Petro Field Industries Inc.

Petro Field Industries Inc.

December 05, 2006 15:56 ET

Petro Field Sells Non-Core Business Assets and Enters Into Licensing Agreement

CALGARY, ALBERTA--(CCNMatthews - Dec. 5, 2006) - Petro Field Industries Inc. ("Petro Field" or the "Company") (TSX VENTURE:PF) announces that its wholly-owned subsidiary, Tornado Technologies Canada Inc. ("Tornado") has reached an agreement to sell certain non-core business assets to Prism Production Products Corp., a company owned by a former Director of Petro Field, who remained an Insider of the Company prior to this transaction. The assets sold include a "start-up" fabrication facility in Matamoros, Mexico and the exclusive rights to Tornado's tank vent, liquifire, chemical injection pump and gas blanket controller product lines and related patents. In Tornado's fiscal 2006 these products contributed sales volumes of less than $2 million. The Company also entered into a Licensing Agreement pursuant to which it will receive royalties for the manufacture and sale of certain products from the Matamoros facility.

The consideration for these assets is $1,445,142.50, which sum shall be paid by the surrender of 1,798,000 common shares of the Company for cancellation. No finders fee is to be paid with respect to this transaction. This transaction is subject to the approval of the TSX Venture Exchange.

The Company wishes to inform its shareholders that the integration of the Tornado business with Petro Field nears its successful completion.

Petro Field Industries Inc. is a Calgary, Alberta-based designer and fabricator of innovative industrial combustion systems, oil and gas processing equipment and Hydro Vac trucks.

The TSX Venture Exchange Inc. does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information