Cdn Oilfield Technologies & Solutions Corp.
TSX VENTURE : OTS

Cdn Oilfield Technologies & Solutions Corp.

June 04, 2012 09:00 ET

Cdn Oilfield Technologies & Solutions Corp.: Business Update Mexico

CALGARY, ALBERTA--(Marketwire - June 4, 2012) - Cdn Oilfield Technologies & Solutions Corp. (TSX VENTURE:OTS) -

The corporation is pleased to provide an update for its business operations in Mexico. The corporation's 100% wholly owned Mexican subsidiary, COTS Mexico ("COTS"), has made significant progress implementing its business model in Mexico. To date, the company has focused its operations in Mexico on the supply and installation of third party products and services, and providing advance project financing in return for project revenue sharing.

Flexible Pipe

To date COTS has delivered and installed approximately 36 kms of flexible pipe in Northern Mexico with an additional 8.8 km in transit and installation starting over the next couple of weeks. The supply and installation has been very successful with absolutely NO FAILURES, not a statement to be taken lightly! Pemex, the Mexican state oil and gas producer has been very pleased with the results and quick response times. Our end to end solution has proven to build confidence and ultimately acceptance amongst our clients. COTS is currently negotiating further supply contracts and will provide further guidance once finalized.

A pilot project in Southern Mexico for the supply and installation of flexible pipe in swamp and rough terrain conditions is nearing completion. The conditions were challenging, we met those challenges head on and we came out on top. COTS is confident that new business will develop upon completion of this test project.

Construction Projects - Mexico

As previously announced on Jan 23, 2012, COTS has entered into a joint venture agreement with a major contractor under contract to Schlumberger who is operating under a master contract to Pemex to build infrastructure and supply construction services for road access and well platforms. The size of the initial project known as Terra 114 was for 70 million pesos and has since been increased to 120 million pesos (approximately $9 million USD).

As reported in the May 30, 2012 press release, approximately 50% of the Terra 114 project was completed as at such date. As of the date herein, approximately 90% of the project has now been completed with the final completion for the Terra 114 project anticipated to be on or about June 15, 2012.

Terra 114 is paid on progress proportionally to each completed phase and 27,492,141 (approximately $2M USD) has been collected for progress work on Terra 114 up to March 30, 2012 under a direct assignment payment arrangement with Schlumberger. In addition, $300,000 USD and 4,075,765 pesos (approximately $299,688 USD) has also been collected from smaller projects. New projects are currently being negotiated and will be announced once finalized.

The corporation is also pleased to announce the launch of its revised website.

Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, anticipated sales of the company and completion of installation projects . Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and Mexico and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other industry and geographic specific risk factors. Investors are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations, except as otherwise required by applicable securities legislation. Investors are cautioned not to place undue reliance on forward-looking information.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state of the United States or any other jurisdiction outside of Canada in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the U.S. Securities Act of c1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act of 1933 and applicable state securities laws.

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.

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