Redrock Oil Sands, Inc.

Redrock Oil Sands, Inc.

November 16, 2006 15:07 ET

Redrock Oil Sands Acquires Industrial Services Company REGS, LLC

DENVER, COLORADO--(CCNMatthews - Nov. 16, 2006) - Redrock Oil Sands, Inc. announced today that it has acquired REGS, LLC (dba Resource Environmental Group Services) a leading provider of technology-based industrial services in the West and Midwest. Also included in the transaction is the acquisition of Tactical Cleaning Company, LLC, a railcar and tanker truck cleaning company with operations in Colorado, Nebraska and Oklahoma. The acquisition of REGS further expands Redrock Oil Sands' capacity as a resource-based developer of oil separation solutions and products. REGS had sales of $6 million in 2005 and employs over 50 staff across the country.

Roger Williams, Chief Executive Officer of Redrock Oil Sands, explains: "In addition to firmly establishing our presence in the industrial services market, REGS brings a top notch management team to Redrock, and an established network of energy customers throughout the West and Midwest. This acquisition moves us directly from being a start-up energy and resource development company to an established services enterprise with a history of revenues and operations. We expect to capitalize on many synergies between Redrock's materials separation technologies and REGS' industrial services expertise."

Founded in 1994, REGS, LLC is a leading provider of technology-based industrial and environmental services in the West and Midwest servicing the petroleum industry, various industrial and manufacturing clients, medical facilities, universities, government entities, and environmental and consulting firms. REGS' portfolio of industrial services includes refinery tank cleaning; proprietary and fully mobile, non-entry tank cleaning technology; railcar cleaning services; and dewatering and centrifuging for biosolid removal. REGS offers comprehensive environmental services including hazardous and non-hazardous industrial waste transportation; soil and water remediation; regulatory compliance services; and environmental construction including contaminated soil excavation and removal.

"We are extremely pleased to join forces with Redrock and look forward to the rapid expansion of our operations throughout the country," said Michael Cardillo, REGS President and Founder. "As part of Redrock Oil Sands, we believe we are better positioned to capitalize on our numerous growth opportunities and secure the financing required to grow our operations. Redrock's management team and Board of Directors have the experience and capacity to enable REGS to position itself as a leading industrial services company in the U.S."

About Redrock Oil Sands, Inc.

Redrock Oil Sands, Inc. (Redrock) is a resource-based development company with expertise in several areas of materials science. The Company's patent-pending and proprietary technologies for bitumen production and waste remediation incorporate energy efficient and cost effective methods to separate materials into valued material streams. Redrock is deploying a national platform for industrial services and environmental remediation through the Company's wholly-owned subsidiary REGS, LLC. In addition, the Company owns the rights to TDI Technology's oil sands extraction process designed to develop smaller scale oil sand deposits that would otherwise be uneconomic to exploit using conventional technologies. For more information on the Company visit www.redrockoilsands.com & www.regsindustrial.com.

This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects", "projects", "plans", and certain of the other foregoing statements may be deemed "forward-looking statements". Although Redrock Oil Sands believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the development of oil sands projects, including risks of fire, explosion, equipment failure, pit wall collapse, unusual or unexpected geological formations and geotechnical factors, environmental hazards, and other operating and production risks inherent in oil sands mining and production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future performance or delay the timing of sales or completion of mining operations; risks with respect to oil and natural gas prices, a material decline in which could cause the Company to delay or suspend planned mining operations or reduce production levels; and risks relating to the availability of capital to fund mining operations that can be adversely affected by adverse mining results, production declines and declines in oil and gas prices and other risk factors.


Contact Information

  • Redrock Oil Sands, Inc.
    Barry Forward
    Corporate Communications & Investor Relations
    Toll Free: 1-877-973-3645
    Website: www.redrockoilsands.com