Canadian Oil Recovery & Remediation Enterprises Ltd.
TSX VENTURE : CVR

Canadian Oil Recovery & Remediation Enterprises Ltd.

September 08, 2014 08:15 ET

CORRE Announces Upgrading and Lease of Its ARES I Plant

TORONTO, ONTARIO--(Marketwired - Sept. 8, 2014) - Canadian Oil Recovery and Remediation Enterprises Ltd. (TSX VENTURE:CVR) ("CORRE" or the "Company") is pleased to announce that it has entered into an equipment lease agreement ("Agreement") with HERA AG Ambiental S.L. ("HERA") to lease its ARES I soil washing plant presently stored in Kuwait pending deployment in future soil remediation projects. HERA is currently executing the soil remediation SEED project that was awarded to HERA by the Kuwait Oil Company in 2010-2011. HERA chose to lease and add CORRE's ARES I soil washing plant to their current facility in Kuwait for the purpose of increasing their overall soil washing capacity.

The term of the Agreement is for 19 months. In the period of the first seven months of the term of the Agreement ("Initial Period"), HERA will be removing ARES I from storage, making any necessary electrical and mechanical repairs and upgrading the soil washing capacity of ARES I. Under the terms of the Agreement, all repairs, maintenance and upgrading costs which also include US $1,014,000 for the purchase of new higher capacity pumps, parts and components, will be paid by HERA. Furthermore, HERA will pay CORRE a one-time payment of US $80,000 to cover the lease and security deposit of ARES I for the Initial Period. Thereafter, and for a period of one year, HERA will start paying CORRE monthly lease payments calculated on the basis of a fixed daily rate of US $690 plus US $2.92 per cubic meter of oil-contaminated soil washed using the upgraded ARES I on condition that a minimum of 5,000 cubic meters and a maximum of 7,000 cubic meters of oil-contaminated soil is washed per month.

The Agreement further provides that any technology enhancements and modifications made by HERA to the ARES I plant will be the joint intellectual and material property of CORRE and HERA.

The Agreement includes a provision which deals with an option for HERA to purchase the upgraded ARES I at the end of its term for US $1.5 million. This option excludes the sale of centrifuges and other equipment, parts and components of an approximate total value of US $2.0 million that are presently part of ARES I. The option to purchase ARES I is subject to review and approval by the TSX Venture Exchange.

"We are pleased that HERA has elected to lease our ARES I soil washing plant to increase the soil washing capacity of their Kuwait facility. We hope that this Agreement will be a first step in the development of a closer strategic alliance between CORRE and HERA who has been gaining invaluable experience in the remediation of a wide variety of oil-contaminated soil and fines in Kuwait." stated Mr. John Lorenzo, the Company's CEO. "I believe that CORRE will be able to add to its soil remediation experience and knowledge from HERA as HERA upgrades, enhances and utilizes the technology of ARES I for their future mutual benefit."

About CORRE

CORRE is a Canadian-based oil services company which trades on the TSX Venture Exchange under the symbol CVR. CORRE provides full cycle oil waste management solutions to the petroleum industry. CORRE's customers are primarily in the upstream petroleum sector (oil production and drilling companies) and downstream petroleum sector (oil refinery, transportation and distribution companies). CORRE's operating lines include remediating oil-contaminated soil; treating sludge, oil based muds and drilling waste, oil recovery; automated oil storage tank cleaning, oil and gas engineering, and project management. CORRE provides its advanced environmental solutions through strategic operating partnerships with some of the most distinguished companies throughout the world.

Forward Looking Statements

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, the potential future value of the KOC Contract, estimated operating costs and CAPEX and the potential for successfully obtaining additional contracts via the tendering processes discussed herein. 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: commodity price volatility; general economic conditions in Canada, the United States, the MENA region 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 laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers 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. Readers are cautioned not to place undue reliance on forward-looking information.

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

  • Canadian Oil Recovery and Remediation Enterprises Ltd.
    John Lorenzo
    Chairman & CEO
    (416) 368-4027

    Canadian Oil Recovery and Remediation Enterprises Ltd.
    David Freeman
    Corporate Development
    (416) 368-4027
    dfreeman@corre.com