Formation Fluid Management Inc.
TSX VENTURE : FFM

May 27, 2011 18:34 ET

Formation Fluid Management-News Release

CALGARY, ALBERTA--(Marketwire - May 27, 2011) - Formation Fluid Management Inc. (TSX VENTURE:FFM) ("FFM") is pleased to announce that our engineering department has confirmed the commissioning date for our first commercial scale water processing unit as June 30, 2011. The main unit and the associated pre-filtration unit have both been fully designed in-house by our lead engineer and we are currently in the final stages of manufacturing in our facility in Red Deer. The Mobile Treatment Unit will consist of 2 modules that are housed on two independent trailers. The commissioning date has been delayed due to several weeks delay in acquiring necessary parts and materials from suppliers and due to design improvements that were implemented in the final stages of construction.

Our Mobile Treatment Unit has been to designed to be capable of processing flowback and produced water at 60m3 per hour and is expected to deliver the industry's first "Low-Cost" treatment process that can be ramped up and down to meet different wastewater treatments demands.

FFM also participated with our mobile test unit in a demonstration of treating contaminated runoff and ground water from an industrial site in the lower mainland of BC in April, 2011. The purpose of the demonstration and testing was to capture and treat the water on the site before it leaches into the river. Another component of the test was to treat bilge water from the shipping industry. The facility cannot allow contamination from their site to leak into any adjacent properties or waterways, they are obligated by law to capture, contain and treat contamination resulting from the operations of their business. Independent laboratory test results by Envirochem Services Inc. confirmed that the treated water exceeded the CCME and BC Aquatic Life Guidelines requirements for the ground and runoff water as well as the bilge water. After the successful demonstration in April an invitation to return to further expand our testing was extended.

Our sales department is finalizing negotiations regarding the first contract for our commercial unit. We expect to make an announcement very soon. Once our first unit is under contract and generating revenue we intend to start the process for the construction of additional units as soon as possible. The firm commissioning date for the first commercial sized unit has made it possible for our sales department to start discussing the use of our services with the planning departments of those potential clients with early summer programs requiring our type of service.

We expect that our FFT Water Treatment Process will allow us to get established in the significant wastewater treatment market and we believe that we will become the leader in this market due to our unique design and "Low-Cost" alternative disposal methods. In our opinion, to date the approaches to the tremendous wastewater treatment problems have been inadequate and we can solve the two major issues with our Mobile Treatment Plants: We are COST-EFFECTIVE and provide the VOLUME NEEDED!

On behalf of the Board of Directors

Al Radford, President & CEO

FORWARD LOOKING INFORMATION

Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.

The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events, risks arising from operations generally, reliance on contractual rights such as licenses and leases in the conduct of its business, reliance on key personnel, market acceptance of the Company's products and services, the need to protect intellectual property and other proprietary rights, possible failure of the business model or business plan or the inability to implement the business model or business plan as planned, fluctuations in the cost of materials, competition, environmental matters, and insurance or lack thereof.

The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.

Neither the 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.

Contact Information

  • Formation Fluid Management Inc.
    Wolf Fiedler
    Senior Vice President
    (403) 550-9027
    wfiedler@fftinc.ca