Palko Environmental Ltd.
TSX : PLK

Palko Environmental Ltd.

March 28, 2011 09:15 ET

Palko Environmental Ltd. Announces Appointment of Chief Operating Officer and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - March 28, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Palko Environmental Ltd. ("Palko" or "the Company") (TSX:PLK) is very pleased to announce the appointment of Mr. Niels Versfeld to the role of Chief Operating Officer ("COO") effective today. While serving as Palko's VP Corporate Development, Mr. Versfeld played a leading role in the turnaround of the business, while driving the execution of various organic and acquisition growth opportunities.

"Niels has made an impressive impact in our business over the past fifteen months", stated Jay B. Simmons, CEO of Palko. "His contributions helped create a larger, more diversified business. His skills are now required in the broader role of COO to ensure systematic, efficient, profitable growth." 

Prior to Palko, Niels was responsible for regulatory development and compliance at a competitor during a significant expansion period. Previous to this, Niels focused on addressing environmental and regulatory challenges while employed at production companies and consultancies. Niels holds an H.B.Sc. in Environmental Science, an MBA focused on Energy Management and is a certified Environmental Professional. 

Over the past year the Company has consolidated and strengthened the services we offer our customers, tested new technologies and advanced new business opportunities. With our strengthened balance sheet, improved operating results over the past year and anticipated for 2011, the Company is poised for growth. In Saskatchewan Palko has secured wells for future disposal operations and is currently finalizing the regulatory process for two new facilities. The Company will commence with construction of these facilities upon final receipt of regulatory approval. In Alberta we are analyzing and developing new facility locations, as well as the expansion of services at existing facilities and onsite to offer better service for our customers and value for our shareholders.

About Palko Environmental Ltd.

Palko Environmental Ltd ("Palko") is a Calgary, Alberta based company, incorporated under the Business Corporations Act (Alberta), that provides hydrocarbon waste management and resource recovery solutions to the upstream and midstream oil and gas industry in western Canada.

Palko owns/operates six waste management facilities in Alberta and Saskatchewan and a new division of mobile on-site oil treatment systems. We handle hydrocarbon waste streams through-out the life cycle of conventional and unconventional oil and gas wells including drilling, fracturing, completions, production, work-overs and subsequent abandonment and reclamation of the well. Our waste management services include the treatment and the processing of hydrocarbon wastes, recovery of oil for our customers and disposal of various waste by-products post processing such as water, waste fluids and solids. In addition we offer our customers the value-added services of shipping and marketing their oil through our strategic partnership with Gibson Energy ULC ("Gibson") (Gibson holds a 39% ownership interest in Palko).

Palko is an established industry player in a growing market with numerous barriers to entry. Over the past year we have gained financial strength evident by our current balance sheet and improved financial performance. Palko is now focused on future growth through increases in activity at our facilities, investing in a multitude of accretive organic growth opportunities that we have analyzed, and leveraging off operating synergies with our strategic partner, Gibson.

Additional information relating to the Company is available on the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.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 their operating results will continue to improve for 2011;
  • Palko's expectation that they will be able to capitalize on growth opportunities and expand current facilities;
  • Palko's intention to build at least two new facilities;
  • Palko's intention to invest in a multitude of accretive organic growth opportunities; and
  • Palko's ability to leverage off operating synergies with Gibson.

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;
  • increased drilling activity levels for 2011 and a corresponding increase in Palko's business;
  • stable or increasing commodity prices;
  • ability to maintain relationships and retain qualified personnel and management;
  • ability to finance and construct new facilities; and
  • maintaining Palko's relationship with Gibson.

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;
  • Palko's strategic relationship with Gibson will not be maintained;
  • 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;
  • the impact of governmental regulation, including environmental regulation;
  • stock market volatility;
  • drilling activity will not be at the level or of the nature anticipated;
  • the inability to maintain and capitalize on existing business relationships or retain qualified personnel or management; and
  • the uncertainty inherent in attracting capital;
  • construction delays, problems or stoppages.

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. Moreover, Palko does not assume responsibility for the accuracy or completeness of such forward-looking statements.

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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