CORRE Provides Business Update
February 27 2012 - 5:28PM
Marketwired
Canadian Oil Recovery and Remediation Enterprises Ltd. (TSX
VENTURE:CVR)(OTCQX:CRVYF) ("CORRE" or the "Company") is providing
an update on the Company's operations including awarded contracts,
upcoming projects and tenders, and bidding status.
1. CORRE through its SAR-CORRE MENA ("SCM") operating partnership with SAR
AS ("SAR"), a leading Norwegian oil and industrial waste management
company, is currently in full progress with the mobilization of
operating assets into Jordan in conjunction with SCM's first operating
contract with BP Plc. This contract is for the cleaning and treatment of
drill cuttings for gas wells in the Risha field in the northern part of
Jordan. This contract has a gross value of approximately $7 million over
two years, increasing to approximately $10 million if a third year is
elected by BP. This contract has the potential of being substantially
increased in both term and value if exploration of the 7,000 square km
Risha block leads to the discovery of a larger reserve base at which
point, according to industry sources, BP would invest billions in a
second phase. This contract is expected to operationally commence during
the second quarter of 2012.
2. CORRE through its SCM partnership is currently preparing to submit bids
to clean and treat drill cuttings for national and oil super majors
operating in the Gulf region. These contracts will have larger revenue
values and terms than the Company's first contract in Jordan. CORRE will
provide further updates in due course.
3. Through SCM's newly formed exclusive operating partnership for Saudi
Arabia with Petroleum, Chemical and Mining Company Limited ("PCMC"), a
leading local oil, gas and industrial engineering and project management
company, SCM is currently reviewing and preparing to submit proposals
for several project opportunities for large Saudi-based petrochemical
and petroleum refineries. These projects primarily relate to oil
recovery, cleaning and treatment of sludge lagoons. PCMC is wholly-owned
by one of the largest construction companies in the Middle East and
CORRE's largest shareholder. CORRE believes this partnership which
allows it to successfully penetrate, negotiate and operate projects in
Saudi Arabia, one of the largest markets for oil waste management
services, is uniquely available to CORRE and poses a high a barrier to
entry for other western operators in this sector. The Company will
provide more updates as these projects develop.
4. CORRE is currently awaiting the release of an extensive tender by the
Kuwait Oil Company ("KOC") to bid for a five-year contract to build and
operate a drill cuttings treatment facility in Kuwait. Through SCM,
CORRE is one of only thirteen global companies that is pre-qualified and
approved as an eligible contractor to bid for this upcoming tender. This
is expected to be a high value tender and SCM strongly believes given
its recent successful bid for drill cuttings in Jordan, it will be
competitively placed for this tender. CORRE will provide further updates
as this develops.
5. CORRE learnt this past weekend that KOC officially announced the winners
of the first three SEED tenders for the treatment of 25 oil contaminated
pits out of an estimated 6,000 SEED pits. Over the next two to three
decades, KOC intends to recover the oil and remediate the remaining
approximate 5,975 SEED pits, in addition to launching separate contracts
to clean the Kuwait Oil Lakes. The clean-up of the Kuwait Oil Lakes
created by the 1991 Gulf War represents the largest environmental
remediation project in history requiring the oil recovery and
remediation of approximately 300 Oil Lakes, as well as oil and soot
encrusted land surface (called "tarcrete") covering approximately 5% of
the country's area.
Although SCM made it to the final round of one of the SEED
tenders after months of active dialogue and evaluation, ensuring
that SCM's oil recovery and soil washing technologies and processes
have been well received and recognized, SCM's prices were not low
enough for it to win this first release of SEED tenders. However,
this first round of bids has provided SCM management an early
opportunity to gain invaluable knowledge about the competition's
pricing and bidding strategies for this first series of remediation
contracts.
SCM is confident that it will have increased chances of success
in the second round of SEED pits and Oil Lakes tenders expected to
be released by KOC in the spring or summer of this year.
CORRE believes this first round of SEED tenders will also be an
equally valuable experience for KOC in the optimization of its
learning curve of understanding and testing its pre-qualified
bidders technologies, processes and prices. SCM believes it offers
a highly effective oil recovery and remediation technology through
soil washing with a process geared for the high expected treatment
volumes and after further optimization for pricing, will be highly
competitive for future bidding rounds.
"This will be a very busy year in both winning and in making the
right pricing adjustment in our bidding strategies to win future
projects. As we can immediately identify decades of work ahead of
CORRE, our specialized oil service business demands our continual
focus and improvement of our chances to compete and secure
projects. We have already proven earlier this year that we are
capable of doing so with BP," commented John Lorenzo, CORRE's CEO
and Chairman. "We are keenly focused on and excited about the
opportunities that are ahead that we will capitalize on for the
long-term benefit of all our shareholders. This includes expanding
our line of oil services by providing customers with much needed
and proven technologies to better quantify and specify the
remediation scope and volumes for more precise and comprehensive
tender documents."
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 www.corre.com
KCSA Strategic Communications Todd Fromer / Phil Carlson
212-896-1215 / 1233Corre@kcsa.com
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