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

Canadian Oil Recovery & Remediation Enterprises Ltd.

February 06, 2012 12:58 ET

CORRE Forms Strategic Operating Partnership for Saudi Arabia

TORONTO, ONTARIO--(Marketwire - Feb. 6, 2012) - Canadian Oil Recovery and Remediation Enterprises Ltd. (TSX VENTURE:CVR)(OTCQX:CRVYF) ("CORRE" or the "Company") is pleased to announce that the Company has entered into an exclusive operating partnership for Saudi Arabia with a leading company in the local industrial and oil and gas sector called Petroleum, Chemicals and Mining Company Limited ("PCMC").

PCMC, founded in 1994 as a division of the Saudi Binladin Group ("SBG") and now an independent Saudi corporation wholly-owned by SBG, has been undertaking some of the most prestigious projects in the Kingdom of Saudi Arabia. Their services include engineering, procurement, construction, commissioning and start up services across several key industries including petrochemical plants, oil refineries, renewable energy, mining, and power generation and distribution. Their clients include Saudi Aramco, SABIC, and the Saudi Arabian Ministry of Water & Electricity. PCMC is able to leverage the financial strength, operating assets and decades of contracting experience of its parent company, one of the largest construction companies in the Middle East.

This operating partnership ("Saudi Co.") will be operated through a newly-formed limited liability company established in Saudi Arabia. CORRE through its existing SAR-CORRE MENA ("SCM") partnership will hold a 65% equity stake and PCMC will hold 35%.

Saudi Co. will bring together the collective strengths of PCMC and SCM into one company to provide the Saudi Arabian market with comprehensive oil waste management and remediation services for the petroleum and petrochemical industries. Saudi Co. will benefit from well qualified and experienced international senior technical and project management personnel, as well local Saudi engineers and technicians trained through operating facilities and projects currently undertaken by SCM in other markets. The services Saudi Co. will provide for Saudi Arabia includes:

  • Soil remediation and rehabilitation of oil contaminated soil
  • Oily sludge, slop oil and drill cuttings treatment
  • Oil recovery
  • Oil storage tank and tanker de-sludging and cleaning
  • Water treatment
  • Industrial and hazardous waste management

As part of the synergy of PCMC and SCM joining together in Saudi Arabia, PCMC will provide, among other things, all administrative and logistical functions for Saudi Co. including all customer marketing and sales support services. This will include the following:

  • Initiating new customer contacts on behalf of Saudi Co.
  • Assisting Saudi Co. in developing proposals and presentations
  • Customer follow-up and contract negotiations
  • Provision of local logistics, including site services and manpower required by Saudi Co. for executing awarded contracts
  • Assistance with local project financing

"This partnership marks the accomplishment of another key milestone in our business development in the Kingdom of Saudi Arabia and the MENA region," commented John Lorenzo, CORRE's CEO. "This partnership further lays a strong foundation upon which we are building a solid business with PCMC's Saudi petrochemical customers and Saudi Aramco. We thank our major shareholder for making this partnership a reality."

For additional information about PCMC, please visit CORRE's website (www.corre.com) and refer to the tab for "Strategic Operating Partnerships".

Saudi Co. is subject to final board approval of SCM and PCMC, as well as the completion of a definitive shareholders agreement reflecting the agreed upon terms.

About CORRE

CORRE (www.corre.com) is a Canadian-based clean technology company that provides innovative and complete oil waste management and environmental solutions to its customers. 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 services through its owned and operated Advanced Recovery Equipment Systems ("ARES") and through strategic operating partnerships. ARES is a platform of services and operating equipment facilities based on proven technologies and innovative operating processes. 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).

Forward Looking Statements

Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are 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 projected in the forward-looking statements. Except as required by applicable securities requirements, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

Neither 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 the release.

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