CanGas Solutions Ltd.

February 02, 2012 17:28 ET

CanGas Solutions Ltd. Announces Operational Update

CALGARY, ALBERTA--(Marketwire - Feb. 2, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA. THE SECURITIES OF CANGAS HAVE NOT BEEN, NOR WILL BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS ABSENT U.S. REGISTRATION OR AN APPLICABLE EXEMPTION FROM U.S. REGISTRATION REQUIREMENTS.

CanGas Solutions Ltd. ("CanGas" or the "Company") is pleased to announce it will commence operations as a key service provider in the third well of a pilot project with CanElson Drilling Inc. ("CanElson"). Given the success of the initial tests and subject to mutual agreement, CanGas intends to work with CanElson as they implement this technology on four more of their drilling rigs in the Saskatchewan Bakken resource play to displace diesel with natural gas in the next two quarters.

CanGas is currently utilizing its services of transporting and monetizing stranded natural gas in the southeast Saskatchewan Bakken region and central Alberta for several TSX listed exploration and production companies.

President and CEO Greg Loewen says, "We are very well positioned to create value for our shareholders with both divisions of our business. In our Compressed Natural Gas ("CNG") division, we are displacing diesel with natural gas saving our customers significant amounts in their fuel costs. On an energy equivalent basis, diesel is approximately $34 per mcf which makes the economics attractive for CanGas and our customers based on current natural gas prices. On the Raw Gas Transport ("RGT") side of our business, our services have allowed our customers to monetize natural gas they were previously flaring or venting, recognize the respective production and reserves for the natural gas previously being flared, and allow oil production from wells that would otherwise be required to be shut in."

About CanGas

CanGas Solutions Ltd. is a private, Alberta based oilfield service company whose business is containerized gas transport. The two main services provided are capturing and monetizing raw natural gas that is currently being flared/vented by the energy industry and transporting processed natural gas for use as a fuel to displace diesel or propane.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities of CanGas in any jurisdiction, including the United States.

READER ADVISORY

Statements in this news release may contain forward-looking information, including, but not limited to, statements regarding the Company's business plans. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change, unless required by applicable law. The reader is cautioned not to place undue reliance on this forward-looking information.

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