Cdn Oilfield Technologies & Solutions Corp.
TSX VENTURE : OTS

Cdn Oilfield Technologies & Solutions Corp.

November 24, 2011 09:00 ET

COTS Receives Purchase Order for New Projects in Mexico and Tests Finance Model

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2011) - Cdn Oilfield Technologies & Solutions Corp. (TSX VENTURE:OTS) -

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") has received a new purchase order for the supply and installation of 3" Ansi 600 flexible pipe and connectors to install 7.053 km of Flexsteel™ Pipeline Products rated at 1500 psi for the wells identified as RICOS 1 - 1.953 KM, RUSCO 3 - 0.766 KM, CAUCALOSO 45 - 2.947 KM, GRANADITAS 4 - 1.235 KM and CUITLAHUAC 977 - 0.152 KM, owned and operated by Pemex, the state owned oil and gas producer under contract to an established Mexican service company.

COTS has successfully installed 18.7 km of Flexsteel flexible pipe and accessories to date without failure or incident and continues to execute on its business strategy demonstrating industry leadership in Mexico.

COTS is working closely with local financiers and contractors in Mexico to finance individual projects at no cost to the company and with no dilution to investors. Under the new financing model, payments for completed projects will be made directly to COTS under a credit facility that guarantees the distribution of payments. The new financing model will allow projects to be self-financed and COTS will be able to grow at a more rapid rate, allowing the company to take on larger projects and with no additional risk exposure. A pilot project under the new financing model is currently underway and the processes will be monitored closely to ensure its success.

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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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