SOURCE: MCW Energy Group

June 28, 2012 07:00 ET

MCW Energy Group Signs Key Oil Sands Material Supply Agreement With Temple Mountain Energy, Utah

SHEDIAC, NB and FRANKFURT, GERMANY--(Marketwire - Jun 28, 2012) - MCW Energy Group Limited, a Canadian holding company with two divisions focused on value creation: (1) MCW Fuels Inc., a well-established distributor of gasoline and diesel fuels to a growing list of service stations in southern California, and, (2) MCW Oil Sands Recovery, LLC, which will implement MCW Energy Group's proprietary oil sands extraction technology on its lease in Asphalt Ridge, Utah, is pleased to announce that the Company has signed a key oil sands material Supply Agreement with Temple Mountain Energy Inc. of Utah.

Under this five year Supply Agreement, Temple Mountain will supply MCW with 8,333 tons of oil sands material per month until the year 2016. The terms of the Agreement also include a process-ready, stockpiled inventory of 100,000 tons of oil sands materials which will be instrumental in the start-up of MCW's 250 bpd pilot plant scheduled for operation during 2012.

"The signing of the Supply Agreement with Temple Mountain is a benchmark in our production program, as it provides us with a jump start in oil sands material processing while MCW prepares its own oil sands lease for production," stated Dr. R.G. Bailey, CEO of MCW Energy Group. MCW's management team feel that this timely arrangement will not only save valuable site preparation time, but will also provide an earlier-than-expected revenue flow for the Company. The costs of $ 19.50 per ton (crushed and delivered from Temple Mountain's nearby lease) will fit well within MCW's overall projected cost of approximately $ 38.50 USD per barrel.

Under the terms of the Agreement, MCW Energy Group also has the option of two extraction unit locations on the Temple Mountain lease site to further minimize material processing costs. MCW Energy Group may also exercise an option to purchase the Temple Mountain lease, which includes a valid mining permit classified as a "large mine permit," from the state of Utah, one of only two such classified permits in the U.S. Temple Mountain has been processing oil sands materials on its lease site since 2006, supplying asphalt and bitumen products, cleaned sand for hydraulic fracturing and upgraded sweet crude for sale to local refineries. The Temple Mountain lease, with expanded production levels to meet MCW's extraction unit requirements, has a life expectancy of 25-30 years.

About MCW Energy Group:
MCW Energy Group is a Canadian holding company incorporated under the laws of New Brunswick, Canada and consists of two principal portfolio companies: (1) MCW Fuels is engaged in the distribution of liquid fuels throughout the west coast of United States to a growing roster of branded and unbranded service stations, and (2) MCW Oil Sands Recovery, LLC, which holds an oil sands lease in Asphalt Ridge, Utah and is currently implementing MCW's proprietary oil extraction technology with a pilot plant project which is expected to be operational during 2012. With this initial production, the Company is aiming towards the establishment of a vertically-integrated oil producer/distributor, and along with it, the ultimate goal of developing higher profit margins. For more information on the MCW Energy Group, please visit the corporate website: www.mcwenergygroup.com.

Contact Information

  • Press/Media/Investor Contact:
    North America
    Paul Davey
    MCW Energy Group
    334 Main St., Suite 101
    Shediac, NB, E4P 2E5 Canada
    Tel.: 001 (800) 979-1897
    Fax: 001 (866) 571-9615
    Mail: paul@mcwenergygroup.com