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 21^st day of February 2012 and expires on the 20^th 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

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