Cdn Oilfield Technologies & Solutions Corp.

Cdn Oilfield Technologies & Solutions Corp.

February 23, 2012 09:30 ET

COTS Receives New Contract

CALGARY, ALBERTA--(Marketwire - Feb. 23, 2012) - The corporation is pleased to announce that its 100% wholly owned Mexican subsidiary Cdn Oilfield Technologies & Solutions S. de R.L de C.V. ("COTS") (TSX VENTURE:OTS) in partnership with its Mexican construction contractor has received a new contract initially set at $58,300,000.00 Pesos (Approx USD $4.5 million) to supply products and pre-construction services to Pemex, the state owned oil and gas producer on a direct assignment basis. The contract is effective the 21st day of February 2012 and expires on the 20th day of December 2014. We anticipate additional funding to be allocated over the duration of the term of the contract.

This is the first release of funding by Pemex under the new 2012 budget and will increase in size as new projects are assigned to the master contract. All projects awarded under this contract will be assigned directly to the JV partnership with revenues being shared equally on a 50-50 basis.

With the Schlumberger Terra 114 project (previously announced) outperforming beyond expectations, this is paving the way for new business. Approximately $1.5 million USD has been invested by Cots to date in the Terra project with over 160 people deployed and over 60 pieces of major construction equipment actively working on the project. We are very pleased with the progress to date and the overall expertise from everyone involved with the project.

Other Business

In addition, the company is currently installing two flexible pipe projects simultaneously for Pemex, one line for approximately 6.5 km for which pre-payment has been made, and one line for approximately1 km to conclude a previous contract. Both projects are expected to be completed over the next two weeks. It is anticipated that additional projects will be assigned by Pemex upon completion. Further guidance will be provided as new purchase orders are received.

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.

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