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

Canadian Oil Recovery & Remediation Enterprises Ltd.

February 27, 2012 18:29 ET

CORRE Provides Business Update

TORONTO, ONTARIO--(Marketwire - Feb. 27, 2012) - Canadian Oil Recovery and Remediation Enterprises Ltd. (TSX VENTURE:CVR)(OTCQX:CRVYF) ("CORRE" or the "Company") is providing an update on the Company's operations including awarded contracts, upcoming projects and tenders, and bidding status.

  1. CORRE through its SAR-CORRE MENA ("SCM") operating partnership with SAR AS ("SAR"), a leading Norwegian oil and industrial waste management company, is currently in full progress with the mobilization of operating assets into Jordan in conjunction with SCM's first operating contract with BP Plc. This contract is for the cleaning and treatment of drill cuttings for gas wells in the Risha field in the northern part of Jordan. This contract has a gross value of approximately $7 million over two years, increasing to approximately $10 million if a third year is elected by BP. This contract has the potential of being substantially increased in both term and value if exploration of the 7,000 square km Risha block leads to the discovery of a larger reserve base at which point, according to industry sources, BP would invest billions in a second phase. This contract is expected to operationally commence during the second quarter of 2012.
  1. CORRE through its SCM partnership is currently preparing to submit bids to clean and treat drill cuttings for national and oil super majors operating in the Gulf region. These contracts will have larger revenue values and terms than the Company's first contract in Jordan. CORRE will provide further updates in due course.
  1. Through SCM's newly formed exclusive operating partnership for Saudi Arabia with Petroleum, Chemical and Mining Company Limited ("PCMC"), a leading local oil, gas and industrial engineering and project management company, SCM is currently reviewing and preparing to submit proposals for several project opportunities for large Saudi-based petrochemical and petroleum refineries. These projects primarily relate to oil recovery, cleaning and treatment of sludge lagoons. PCMC is wholly-owned by one of the largest construction companies in the Middle East and CORRE's largest shareholder. CORRE believes this partnership which allows it to successfully penetrate, negotiate and operate projects in Saudi Arabia, one of the largest markets for oil waste management services, is uniquely available to CORRE and poses a high a barrier to entry for other western operators in this sector. The Company will provide more updates as these projects develop.
  1. CORRE is currently awaiting the release of an extensive tender by the Kuwait Oil Company ("KOC") to bid for a five-year contract to build and operate a drill cuttings treatment facility in Kuwait. Through SCM, CORRE is one of only thirteen global companies that is pre-qualified and approved as an eligible contractor to bid for this upcoming tender. This is expected to be a high value tender and SCM strongly believes given its recent successful bid for drill cuttings in Jordan, it will be competitively placed for this tender. CORRE will provide further updates as this develops.
  1. CORRE learnt this past weekend that KOC officially announced the winners of the first three SEED tenders for the treatment of 25 oil contaminated pits out of an estimated 6,000 SEED pits. Over the next two to three decades, KOC intends to recover the oil and remediate the remaining approximate 5,975 SEED pits, in addition to launching separate contracts to clean the Kuwait Oil Lakes. The clean-up of the Kuwait Oil Lakes created by the 1991 Gulf War represents the largest environmental remediation project in history requiring the oil recovery and remediation of approximately 300 Oil Lakes, as well as oil and soot encrusted land surface (called "tarcrete") covering approximately 5% of the country's area.

Although SCM made it to the final round of one of the SEED tenders after months of active dialogue and evaluation, ensuring that SCM's oil recovery and soil washing technologies and processes have been well received and recognized, SCM's prices were not low enough for it to win this first release of SEED tenders. However, this first round of bids has provided SCM management an early opportunity to gain invaluable knowledge about the competition's pricing and bidding strategies for this first series of remediation contracts.

SCM is confident that it will have increased chances of success in the second round of SEED pits and Oil Lakes tenders expected to be released by KOC in the spring or summer of this year.

CORRE believes this first round of SEED tenders will also be an equally valuable experience for KOC in the optimization of its learning curve of understanding and testing its pre-qualified bidders technologies, processes and prices. SCM believes it offers a highly effective oil recovery and remediation technology through soil washing with a process geared for the high expected treatment volumes and after further optimization for pricing, will be highly competitive for future bidding rounds.

"This will be a very busy year in both winning and in making the right pricing adjustment in our bidding strategies to win future projects. As we can immediately identify decades of work ahead of CORRE, our specialized oil service business demands our continual focus and improvement of our chances to compete and secure projects. We have already proven earlier this year that we are capable of doing so with BP," commented John Lorenzo, CORRE's CEO and Chairman. "We are keenly focused on and excited about the opportunities that are ahead that we will capitalize on for the long-term benefit of all our shareholders. This includes expanding our line of oil services by providing customers with much needed and proven technologies to better quantify and specify the remediation scope and volumes for more precise and comprehensive tender documents."

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.

Contact Information