CORRE Finalizing Contract Terms With Oil Supermajor and Provides Update on Kuwait Contract Bidding
January 04 2012 - 11:05AM
Marketwired
Canadian Oil Recovery and Remediation Enterprises Ltd. (TSX
VENTURE:CVR)(OTCQX:CRVYF) ("CORRE" or the "Company") is pleased to
announce the Company is the winning bidder and is currently
finalizing an oil waste management contract for the treatment of
drill cuttings with an oil supermajor for operations in the Middle
East. Additionally, CORRE is providing an update on the Company's
active bidding progress for a soil remediation and oil recovery
contract (the "SEED Contract") tendered by the Kuwait Oil Company
("KOC").
CORRE, through its SAR-CORRE MENA ("SCM") operating partnership
established with SAR AS ("SAR"), a leading Norwegian oil waste
management operating company, is the winning bidder and is
currently finalizing a contract with a petroleum supermajor to
clean and treat oil and gas drill cuttings in Jordan. The contract,
which is expected to be finalized during this January, will have a
two year term with an optional 1 year extension by the customer. It
will not be a fixed price contract, but based on a daily operating
rate payable for days of normal operation or otherwise, a daily
standby rate. In addition there will be a fixed lump sum payment
for equipment mobilization and demobilization. Commencement of
mobilization is anticipated during January and operations under
this contract are expected to commence by the beginning of the
second quarter of 2012. CORRE will provide further details when the
contract is fully finalized.
In addition to the Company's soil remediation and oil recovery
service line, CORRE believes the opportunity to provide treatment
of drill cuttings for an oil supermajor is significant as this
creates further oil waste management opportunities with this
customer in the Middle East. Additionally, this will provide a
successful operating track record for drill cuttings treatment that
the Company will leverage into the Kuwait and Saudi Arabian markets
where CORRE believes it has a competitive advantage through its
strategic shareholders and longstanding alliances.
Update on KOC Seed Contract
As previously announced, CORRE, through its SCM operating
partnership, submitted bids for three SEED Contracts during the
third quarter of 2011. Since the Company's tender submission, KOC
has written to us twice requesting clarification of certain
specific items in our bid documents. We responded to KOC with
comprehensive clarifications and confirmed our compliance with all
their tender's terms and conditions. As previously stated, bidders
are being evaluated in multiple areas, including commercial terms
(price), technology and operating process, effectiveness of land
rehabilitation, and health and safety standards.
Subsequently, we have received two requests from KOC to extend
our bid bond with respect to one of the SEED contracts (a "Lot")
with a value of approximately $90 million. Most recently KOC has
requested and we have since extended our bid bond with respect to
this Lot from January 3, 2012 to March 3, 2012. As each bidder is
eligible to win only one Lot (as KOC wants to evaluate several
operators and technologies), CORRE believes the extension of the
bid bond for this Lot indicates continued active evaluation of the
narrowing field of remaining bidders and further indicates
significant interest in the SCM tender as not all bidders have had
their bid bonds extended.
These released tenders are the first of a series of SEED
contracts expected to be issued by KOC and represent only a very
small portion of an approximate 6,000 oil pits on the KOC
properties. These contracts are also a precursor to larger soil
remediation and oil recovery contracts with aggregate values
estimated to be in excess of $3 billion for the clean-up of the
Kuwait Oil Lakes.
For further information on the SEED Contracts, please refer to
the Company's press releases dated September 9, July 18, May 13 and
April 11, 2011.
SCM's senior management team (which include CORRE's CEO and CFO)
will be in the Middle East during the second half of January
finalizing details for the drill cuttings contract and completing
the operating structure of the Company's operations in the Kingdom
of Saudi Arabia through the Company's largest shareholder, Al-Najah
Advanced Technology Co. Ltd., a subsidiary of the largest
construction company in the Kingdom.
About CORRE
CORRE (www.corre.com) is a Canadian-based clean technology
company that provides innovative and complete oil waste management
and environmental solutions to its customers. CORRE's operating
lines include remediating oil-contaminated soil; treating sludge,
oil based muds and drilling waste; oil recovery; automated oil
storage tank cleaning; oil and gas engineering, and project
management. CORRE provides its services through its owned and
operated Advanced Recovery Equipment Systems ("ARES") and through
strategic operating partnerships. ARES is a platform of services
and operating equipment facilities based on proven technologies and
innovative operating processes. CORRE's customers are primarily in
the upstream petroleum sector (oil production and drilling
companies) and downstream petroleum sector (oil refinery,
transportation and distribution companies).
Forward Looking Statements
Except for statements of historical fact relating to the
Company, certain information contained herein constitutes
forward-looking statements. Forward-looking statements are based on
the opinions and estimates of management at the date the statements
are made, and are subject to a variety of risks and uncertainties
and other factors that could cause actual events or results to
differ materially from those projected in the forward-looking
statements. Except as required by applicable securities
requirements, the Company undertakes no obligation to update
forward-looking statements if circumstances or management's
estimates or opinions should change. The reader is cautioned not to
place undue reliance on forward-looking statements.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of the release.
Contacts: CORRE LTD. Alex Gress CFO 416-368-4027agress@corre.com
CORRE LTD. Lindsay Cross 416-368-3050lcross@corre.com KCSA
Strategic Communications Todd Fromer / Phil Carlson 212-896-1215 /
1233 / 1232Corre@kcsa.com
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