Palko Environmental Ltd.
TSX : PLK

Palko Environmental Ltd.

November 10, 2011 09:00 ET

Palko Announces Acquistion of Landfill Assets Near Heward, SK

CALGARY, ALBERTA--(Marketwire - Nov. 10, 2011) - Palko Environmental Ltd. ("Palko" or "the Company") (TSX:PLK) is pleased to announce the purchase of assets permitting the development of an Industrial/Oilfield landfill and treatment pad near Heward, Saskatchewan. The assets include a parcel of land approved for landfill development, associated regulatory approvals and landfill operations infrastructure. Palko purchased the assets from Harthaven Waste Management Ltd. for cash consideration of $1,875,000 plus applicable taxes. Palko expects to commence construction in the second quarter of 2012 and begin operations in the latter half of 2012.

"The Bakken continues to be one of the largest, most profitable resource plays for our customers. This purchase continues the strategic expansion of our network into solid waste management thereby allowing us to provide our customers with superior integrated waste management solutions" said Steven Peterson, Palko's President.

In proximity to Palko's five South East Saskatchewan facilities, the landfill and treatment pad will be strategically positioned as the nearest solid waste management facility for drilling, production, spills and reclamation within the Bakken field. "Harthaven is excited to have Palko deliver on our vision of providing an environmentally sound, financially viable waste disposal solution for the local industry" said Dave Hemphill, Harthaven's President.

Palko is also pleased to announce that it has approved, constructed and commenced operations of an exclusive waste handling tank farm for a major Canadian oil producer near Weyburn Saskatchewan. The tank farm allows the producer to streamline its waste management logistics and leverage Palko's various facilities and expertise in order to increase the efficiency of its production activities.

The announced landfill purchase and exclusive waste transfer tank farm demonstrate Palko's commitment to meeting the evolving needs of customers through a growing network of customized solutions.

About Palko Environmental Ltd.

Palko provides processing and disposal of oilfield and industrial wastes through our network of waste handling and hydrocarbon recovery facilities located across Alberta and Saskatchewan. Our focus on client service extends to custom oil treating, waste oil reclamation and crude oil market access for customers.

Our services support all aspects and stages of oil and gas exploration and production, including drilling, fracturing, completion, production and subsequent abandonment and reclamation. In addition, Palko provides hydrocarbon recovery and waste management solutions for a variety of non-oilfield and industrial wastes of similar composition.

Additional information about Palko Environmental Ltd. is available at www.sedar.com and on the company's website at www.palko.com.

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

Certain statements in this press release constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Palko, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this document, such statements use such words as "may", "will", "intend", "should", "expect", "believe", "plan", "anticipate", "estimate", "predict", "potential", "continue", or the negative of these terms or other similar terminology.

Such statements include:

  • Palko's expectation that they will be able to commence construction in the second quarter of 2012 and begin operations in the latter half of 2012;

These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this press release. These statements are based on certain assumptions, including:

  • a stable or improving economy;
  • stable or increasing commodity prices;
  • continued stability or growth in the oil and natural gas industry;
  • an expanding market for the Company's services;
  • that necessary consents for and regulatory approval of the Company's proposed landfill are received; and
  • all necessary items for construction of the landfill and treatment pad will be obtained.

Although Palko believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that these expectations will prove to be correct. There are risks which could affect Palko's future results and could cause the results to differ materially from those expressed in these forward looking statements including that:

  • regulatory approvals will not be received;
  • the impact of general economic conditions in Canada and the risk that they will deteriorate;
  • industry conditions, including fluctuations in the price of oil and natural gas and the risk that they decrease;
  • required consents and approvals from regulatory authorities will not be obtained;
  • liabilities and risks inherent in Palko's operations; and
  • technical problems, equipment failure and construction delay;

Statements of past performance should not be construed as an indication of future performance. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors, including those discussed above, could cause actual results to differ materially from the results discussed in the forward-looking statements. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement.

The forward-looking statements included in this Press Release are made as of the date of this Press Release and Palko undertakes no obligation to publicly update or revise forward-looking statements other than as required by applicable laws. You should not place undue reliance on forward-looking statements.

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