Cancen Oil Canada Inc
TSX VENTURE : COI

May 24, 2012 11:30 ET

Cancen Oil Canada Inc. Signs Letter Agreement to Acquire Kinsella Crude Oil Terminal and Blending Facility from Astra

EDMONTON, ALBERTA--(Marketwire - May 24, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Cancen Oil Canada Inc. ("Cancen" or the "Corporation") - (TSX VENTURE:COI) announced today that it has signed an agreement (the "Agreement") whereby Cancen would acquire a 100% interest in the Kinsella Crude Oil Terminal and Blending Facility (the "Facility") from Astra Energy Canada Inc. ("Astra") for a total cash purchase price of $5,000,000 (the "Transaction"). The Facility is an operating clean oil pipeline terminal and blending facility strategically located north of Hardisty, Alberta and is connected to the Bow River pipeline system in Beaver County, Alberta. The Facility consists of surface facilities and equipment required to facilitate custom blending and terminalling of 450 m3 of sweet clean oil per day. The Facility has been in operation since 2004 and provides services to Western Canadian producers. Cancen plans to operate the Facility in its current capacity and upgrade the Facility to treat waste oil and handle waste water. The completion of the Transaction is subject to a number of conditions, including, the Corporation completing either an equity or debt financing of not less than $5,000,000 (the "Financing"), the approval of the Transaction by the TSX Venture Exchange Inc., receipt of all necessary regulatory approval and other usual conditions. An announcement regarding the details of the Financing will be made by the Corporation in due course. The Transaction is an "Arm's Length Transaction", as such term is defined in the policies of the Exchange.

"Acquiring Kinsella is part of Cancen's strategic growth plan and is an important aspect of Cancen's previously announced long term business arrangement with Astra's wholly owned subsidiary Astra Midstream," stated Fred LaHaie, President and Chief Executive Officer of Cancen.

About Cancen

Cancen is an energy services company that focuses on providing specialized services to upstream oil and natural gas companies operating in the Western Canadian Sedimentary Basin. The services provided by Cancen assist these companies with the treatment and sale of crude oil and the handling of by-products associated with oil and natural gas development and production. The services provided by Cancen include crude oil emulsion treatment, oilfield waste processing, and disposal of produced and waste water. As at the date hereof, the Corporation's services are provided at five facilities in Alberta and one facility in British Columbia.

Disclaimer for Forward-Looking Information

This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Corporation's current expectations. When used in this press release, the words "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release include information relating to the upgrading of the Facility by Cancen, the closing of the Transaction and the completion of the Financing. Such statements and information reflect the current view of the Corporation with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.

By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Corporation undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

The Corporation cautions that the foregoing list of material factors is not exhaustive. When relying on Cancen's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Corporation has also assumed that material factors will not cause any forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cancen Oil Canada Inc.
    Frederick LaHaie
    President and Chief Executive Officer
    (780) 452-7205
    (780) 451-1200 (FAX)
    info@cancenoil.com

    Cancen Oil Canada Inc.
    11464 - 149 Street, NW
    Edmonton, AB, T5M 1W7

    Buchalter Consulting
    Stan Buchalter
    Investor Relations
    1 905 631 6537 or Toll Free: 1 866 631 6537
    stan.buchalter@buchalterconsulting.ca