Palko Environmental Ltd.
TSX : PLK

Palko Environmental Ltd.

June 17, 2011 05:00 ET

Palko Announces Approval and Construction of a New Oungre, SK Waste Handling Facility

CALGARY, ALBERTA--(Marketwire - June 17, 2011) -

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Palko Environmental Ltd. ("Palko" or "the Company") (TSX:PLK) announces that it has received final regulatory approval and will commence construction of a new waste handling facility in the Oungre/Hoffer area of Saskatchewan. Palko expects operations to begin before the end of 2011.

"We are excited to announce the addition of the Oungre/Hoffer facility. This addition demonstrates Palko's commitment to servicing our expanding customer base in southern Saskatchewan and expanding Palko's network of Oilfield services," said Steven Peterson, Palko's President. The new facility will service the emerging multi-zone Mississippian play in the area, existing Bakken and Weyburn production in south Saskatchewan, and industrial customers generating hydrocarbon impacted wastes.

Palko previously obtained wellbores in this area and will now recomplete one waste disposal well while maintaining the others for future development. The Oungre facility will be approved to accept upstream and downstream oilfield wastes, hydrocarbon impacted industrial waste fluids, and treat produced oil emulsions. The facility is adjacent to a provincial highway, within pipeline distance to Enbridge's crude oil pipeline network, and located close to North Dakota's substantial Bakken production. Future expansion possibilities include solid waste management and pipeline connected terminalling.

In conjunction, Palko is pleased to announce that the company has increased its board approved capital budget for 2011 from $1.7M to $8.3M. According to Mr. Peterson, "This increase allows us to take advantage of opportunities in south Saskatchewan and capitalize on the ongoing recovery in oil and gas exploration in Western Canada". The revised capital budget includes Palko's Oungre facility, another previously announced planned facility servicing Bakken production, and service expansions in Alberta. Funding for the revised capital budget will come from operating cash flow and availability on our existing credit facilities.

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 of the new waste disposal facility in Saskatchewan with operations to begin before the end of 2011;
  • Palko's expectation that there will be demand for the services to be provided by Palko at the new facility;
  • Palko's intention to recomplete a waste disposal well; and
  • Palko's future expansion possibilities.

These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this document. 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 recompletion; and
  • all necessary items for the new facility 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;
  • drilling activity will not be at the level or of the nature anticipated;
  • liabilities and risks inherent in Palko's operations; and
  • technical and drilling problems, equipment failure and construction or delivery 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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