CALGARY, ALBERTA--(Marketwired - April 2, 2014) - Formation Fluid Management Inc. (TSX VENTURE:FFM) (the "Company" or "Formation Fluid") is pleased to announce the appointment of Mark Bentsen as a director of the Company and as a member of the Audit Committee of the Company.
Mr. Bentsen has over 20 years of oilfield experience as an executive with numerous start-up companies. Mr. Bentsen served as the Chief Executive Officer, President and Director of Cathedral Energy Services Ltd. from June 2000 to October 2013. He was a founder of Directional Plus Ltd. and served as the President from April 1998 to June 2000. From March 1991 to April 1998 he worked with Akita Drilling Ltd. and served as Vice President of Corporate Development from 1993 to 1998. Mr. Bentsen holds a Bachelor of Business Administration from Acadia University.
"The Company is very pleased to have an individual of Mr. Bentsen's caliber & experience joining our team," said Ken Rose, CEO of Formation Fluids. "We are confident that Mark will bring tremendous value and assistance to the Company as we continue to grow."
The Company is also pleased to announce a non-brokered private placement of up to 11,111,111 units (each a "Unit") at a price of $0.18 per Unit for gross proceeds of up to $2,000,000 (the "Offering"). Each Unit will be comprised of one common share and one transferable common share purchase warrant (each a "Warrant") of the Company and each Warrant will entitle the holder thereof to purchase an additional common share of the Company at an exercise price of $0.25 per share for 24 months from the closing of the Offering.
The Company reserves the option to increase the Offering size by 10% to allot and issue up to an additional 1,111,111 Units at the issue price of $0.18 per Unit for additional gross proceeds of up to approximately $200,000.
The securities issued in connection with the Offering and any shares issued in connection with the exercise of Warrants will be subject to a statutory hold period of four months plus a day from the date of issuance of the Units in accordance with applicable securities legislation. Closing of the Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the TSX Venture Exchange.
It is intended that the net proceeds of the Offering will be used primarily for construction of new water treatment plants and as well as general operating capital.
About Formation Fluid
Formation Fluid Technology has developed a waste water treatment plan that uses a proprietary process to clean waste water. The system is mobile and can be scaled to process required volumes. This system treats water to meet or exceed CCME Guidelines (Canadian Environmental Quality Guidelines), resulting in reusable water that can be used for: Boilers, Frac Water, Water Floods, and Drilling Operations. Formation Fluids is seeking to service a significantly underdeveloped segment within the oil and gas industry; its waste water treatment system is intended to cost effectively deal with produced water while satisfying the need to reuse and recycle an increasing valuable resource. For more information, please visit: www.formationfluid.com or contact Investor Relations at (403) 887-8874.
On behalf of the Board of Directors.
Ken Rose, Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain statements contained in this news release, including references to the Company's receipt of applicable approvals, may constitute forward-looking information under applicable Canadian securities legislation. These statements relate to future events and are prospective in nature. All statements other than statements of historical fact may constitute forward-looking statements or contain forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as "may", "will", "project", "predict", "potential", "plan", "continue", "estimate", "expect", "targeting", "intend", "could", "might", "seek", "anticipate", "should", "believe" or variations thereof. Forward-looking information may relate to management's future outlook and anticipated events or results and may include statements or information regarding the future plans or prospects of the Company. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements. The Company believes that the expectations reflected in the forward-looking statements contained in this news release are reasonable, but no assurance can be given that they will prove to be correct. Actual results and future events may differ materially from those anticipated and accordingly forward-looking statements should not be unduly relied upon. Forward-looking statements contained in this document speak only as of the date of this news release. Except as required by applicable law, the Company disclaims any obligation to update any forward-looking information.