SOURCE: Diversified Industries Ltd.

February 23, 2009 07:00 ET

Diversified to Acquire 100% of Spectro Chem

RED DEER, AB--(Marketwire - February 23, 2009) - Diversified Industries Ltd. ("Diversified") (TSX-V: DVS) is pleased to announce the signing of a Letter of Intent to acquire Spectro Chem Inc., an Alberta-based oilfield chemical solutions and service company. Spectro Chem's products include iron sulphide inhibitors, scale inhibitors, emulsion breakers, dispersants, corrosion inhibitors and scavengers.

Spectro Chem was incorporated in the province of Alberta in response to client demand to provide oilfield water quality control, an innovative chemical treating alternative and new insight to providing oil and gas production companies solutions for a wide variety of treatment/application issues. The two founders are seasoned professionals in the oil and gas industry with a specific focus in the areas of oilfield chemicals, applied oilfield chemistry and in providing solutions for oil and gas production problems.

Spectro Chem's corporate motto is "TECHNOLOGY WITH EXPERIENCE" and since inception the company has continually strived to supply its clients with better, more effective means of managing industrial waste waters, and optimization of oil and gas production.

Spectro Chem is being acquired for 500,000 common shares of Diversified to be issued at the closing of the transaction.

Diversified President / CEO, Darren Lamothe, commented: "The owners of Spectro Chem have significant expertise and industry contacts in the oil and gas industry in Western Canada and we are excited to bring Abe Saad and Frank Velden into the Company as shareholders. Spectro Chem has developed several unique chemistries that the Company feels will be very synergistic with our existing specialty chemical products and customers. The combination of Spectro Chem's products along with Diversified/CFR's existing lines of oilfield related chemicals will expand our product line considerably and will significantly enhance our sales and revenue."

The acquisition is subject to due diligence, the acceptance of the TSX Venture Exchange and the approval of Diversified's Board of Directors. It is anticipated that it will close no later than March 30, 2009.

It is the first of several new opportunities that the Company has underway to expand its offering of specialty chemical products to the Energy industry. All manufacturing and sales activities for Spectro Chem products will be handled through CFR Chemicals.

Diversified currently owns 50% with the option to own 100% of CFR Chemicals Inc. For more information please read the Companies' news released on March 2007 or visit our web sites at www.dvsind.com or www.cfrchemicals.com

On behalf of the Board of Directors:

"Darren J. Lamothe"

Darren J. Lamothe, President/CEO

Forward-Looking Statements

Certain statements contained in this news release, including statements which may contain words such as "could," "should," "expect," "anticipate," "believe," "will," and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of Diversified to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

The TSX Venture Exchange has in no way passed upon the merits of the proposed acquisition and has neither approved nor disapproved the content of this press release.

Contact Information

  • For investor information please contact the following:
    Diversified Industries Ltd.
    Corporate Head Quarters
    #915, 4747 67 Street
    Red Deer, Alberta T4N 6H3
    Phone: (403) 346-2149
    Email: Email Contact