Cdn Oilfield Technologies & Solutions Corp.
TSX VENTURE : OTS

Cdn Oilfield Technologies & Solutions Corp.

June 26, 2012 09:00 ET

COTS Receives 2 Purchase Orders for Flexible Pipe & Accessories

CALGARY, ALBERTA--(Marketwire - June 26, 2012) - Cdn Oilfield Technologies & Solutions Corp. (the "Corporation") (TSX VENTURE:OTS) is pleased to announce that its 100% wholly owned Mexican subsidiary Cdn Oilfield Technologies & Solutions S. de R.L de C.V. ("COTS Mexico") has received a purchase order for USD $1.1 million for the supply and installation of 12.5 km 4" Ansi 900 flexible pipe and connectors to a third party contractor under contract to the state owned oil and gas producer Pemex. As agreed between the parties, COTS Mexico will provide products, technical expertise and project management services. An initial fifty percent cash deposit has been received with the balance upon delivery on or about July 13, 2012.

Second Flexible Pipe Project

On November 28, 2011, the Corporation announced receipt of a purchase order to supply and install 17.4 km of flexible pipe and connectors to a third party contractor. Recently, an additional 8.8 km of flexible pipe and has been delivered in Mexico as part of this ongoing project. To date, 6.69 km of flexible pipe has been installed with a total of 15.49 km being delivered. The remaining balance will be ordered once the current installation is nearing completion.

Terra 114

The Terra 114 onshore drilling platform and road construction project is nearing completion. Progress payments have already been received with further payments expected between July 15 and Sept. 1, 2012. The project was a complete success with overall revenues estimated at 120 million pesos (approximately USD $8.7 million based on today's currency exchange rates). Additional projects are currently under review.

Other Construction Projects

As announced on June 5, 2012, two of the three construction projects (Cardenas 627 and Paredon 501) are now complete and pending payment. The third larger project Tecominoacan 846 is expected to be completed over the next 20 days. Approximately 25.5 million pesos (approximately USD $2 million based on today's currency exchange rates) is estimated in total revenue from these three projects.

Phil D'Angelo states, "We are very pleased with the overall performance of the business in Mexico. One year ago, the Corporation had a vision to turn a failing Mexican business into a revenue-driven profitable division. Now we have taken this vision and turned it into a reality. By implementing strict policies, quality control and payment processes the execution of our business model has proven to be efficient and sustainable. To accomplish this in such a short time is unheard of among foreign entities wanting to implement business in Mexico. We will continue to focus on growth based on our proven successes."

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.

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