VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 5, 2014) - Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company"), is pleased to announce that it has completed its acquisition of certain oil and gas interests occupying some 4,000 acres located approximately 40 km south west of Edmonton, Alberta (the "Leduc Lands") from a Canadian company (the "Vendor"), for a purchase price of $1.8 million (plus G.S.T. and customary closing adjustments) (the "Acquisition").
As previously announced the Acquisition of the Leduc Lands aims to strategically diversify the Company's capital investments, operations and revenue while maintaining its focus within the oil and gas industry. Hanwei, through a newly established and wholly owned subsidiary (the "Subsidiary") in Alberta and a limited partnership between the Company and the Subsidiary, will operate the assets being acquired and will own a 100% working interest in the Leduc Lands. It is expected that oil and gas production facilities to be developed within the Leduc Lands will utilize Hanwei's fiberglass reinforced plastic pipe products, associated technologies, and expertise. The Company is currently preparing a development program.
The Acquisition includes a Put/Call Option Agreement (the "Option Agreement") executed between the Vendor and the Company, requiring Vendor to sell and/or the Company to acquire, Vendor's pooled and working interests, wells and pipelines on and related to a section of lands immediately adjacent to the Leduc Lands (the "Option Assets"). The Option Agreement is subject to certain curative measures to be undertaken by Vendor to the satisfaction of the Company within six months of the closing of the Acquisition, the purchase consideration for the Option Assets being $500,000 plus G.S.T.
About Hanwei Energy Services Corp.
Hanwei Energy Services Corp. is a leading manufacturer of high and low pressure, fiberglass reinforced plastic pipe products and associated technologies and services for the international oil and gas, and infrastructure industries. Hanwei serves major energy customers in the Chinese and global energy markets. The Company owns producing oil and gas rights located near Edmonton, Alberta.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
The forward-looking information in this press release presents the Company's expectations as of the date of this press 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, the Company does not undertake to update this information at any particular time, except as required by applicable securities legislation.