CORRE Announces First Contract With BP Plc.
February 01 2012 - 8:45AM
Marketwired
Canadian Oil Recovery and Remediation Enterprises Ltd. (TSX
VENTURE:CVR)(OTCQX:CRVYF) ("CORRE" or the "Company") is pleased to
announce that SAR AS ("SAR"), a leading Norwegian oil waste
management operating company that has previously entered into a
strategic MENA operating partnership with CORRE, has signed a
contract to clean and treat drill cuttings for BP Plc. in Jordan.
Accordingly, this contract is fully assigned to SAR-CORRE MENA
("SCM"), CORRE's MENA operating partnership with SAR.
This contract relates to BP's agreement with Jordan's National
Petroleum Company to invest $237 million to explore for natural gas
reserves in the Risha field near the border with Iraq. This field
covers an area of 7,000 square km and if the exploration leads to
the discovery of a larger reserve basin, it is expected the field's
production could increase from its current 20 million cubic feet
per day to 330 million cubic feet per day by 2015 which is in line
with the Jordanian government's strategy for the continued
development of this field through a second phase. According to
industry sources, BP would invest billions in the second phase.
SCM's contract with BP is currently for two years with an
optional one year extension if elected by BP. Including charges for
asset mobilization and demobilization, over two years the contract
has a value of approximately $7 million increasing to approximately
$10 million if a third year is elected. This contract is based on a
daily operating fee for days of normal operation and otherwise, a
standby rate for non-operating days. However, based on the amount
of natural gas reserves evaluated by BP, this contract has the
potential to be extended and increased both in term and value.
"We are very pleased with this first contract we have with our
operating partner, SAR AS, and with BP," commented John Lorenzo,
CORRE's CEO. "We intend to employ all of our oil services in
projects in the Gulf Region to capitalize on the strong business
network of our Kuwaiti and Saudi strategic alliances and partners.
We are building a Company with our unique line of oil services,
supported by our exceptional proprietary technologies and operating
processes."
The award of this contract from BP represents SCM's first
operating contract and the commencement of the Company's revenue
from its MENA operations. SCM is currently mobilizing operating
assets and resources into Jordan with operations under the contract
expected to start early in the second quarter of 2012. In addition
there may be future opportunities to provide drill cuttings
treatment for BP in other regions, including Oman's natural gas
reserves.
In addition to the Company's soil remediation and oil recovery
service lines, the launch of SCM's operations to clean and treat
drill cuttings in Jordan provides the Company with an active MENA
footprint for this service and provides a track record the Company
can leverage into the Kuwait and Saudi Arabian markets where CORRE
believes it has a competitive advantage through its strategic
shareholders and longstanding alliances. CORRE expects that the
Kuwait Oil Company ("KOC") will release an extensive tender during
the second quarter of 2012 for a five-year contract to build and
operate a fixed drill cuttings treatment facility in Kuwait. Kuwait
is currently enhancing its drilling operations as it moves from
approximately 2.5 million barrels per day to over 4 million barrels
per day over the next few years. CORRE, through SCM, has already
been pre-qualified by KOC and is an approved contractor eligible to
bid on this upcoming tender from KOC.
CORRE's senior management has recently returned from an
extensive trip in the Middle East, including Saudi Arabia. The
Company plans to provide more updates and announcements indue
course relating to activities undertaken during this recent
trip.
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 /
1233Corre@kcsa.com
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