TORONTO, ONTARIO -- (Marketwire) -- 03/15/13 -- Canadian Oil Recovery and Remediation Enterprises Ltd. (TSX VENTURE: CVR) ("CORRE" or the "Company") is pleased to announce that it has completed the requirements of the satellite detection pilot project, conducted with EcoTecnos, by delivering its geo-sensing final report to the Kuwait Oil Company ("KOC"). The report defines and quantifies each type of oily sludge and slop oil in a pit chosen by KOC. The report further provides a 2-D image of the pit with specific colors each depicting a type of oily sludge ranging from light to intermediate and heavy as well as a legend denoting the quantity of each type of oily sludge depicted. The report also shows the extent of the sub-surface penetration of the oily sludge at the bottom of the pit. KOC will be reviewing the report and will verify its findings. Tests will also be conducted by KOC to establish the accuracy of the findings of the EcoTecnos report. Upon KOC's validation of the report, negotiations for a high value geo-sensing satellite detection contract may commence with KOC whereby EcoTecnos would map out, detect and measure all environmentally contaminated areas, pits and oil lakes in Kuwait. CORRE hopes to hear back from KOC anytime in the next two months and will provide an update in a subsequent news release on KOC's position concerning this pilot project and prospective contract of which CORRE has a 50% effective working interest.
Mr. John Lorenzo, the Company's Chief Executive Officer, just returned from a 3-week business trip to Jeddah, Saudi Arabia; Dubai and Kuwait. He was joined by the SAR international team in his visits and meetings with senior environmental teams of three Saudi refineries with whom SAR CORRE MENA LTD ("SCM") is currently engaged in proposals for contracts to treat the oily sludge and slop oil in their refinery's oily sludge collection ponds this year. Directly benefitting CORRE and expanding the market opportunities for SCM are new rules and much more rigorous environmental standards and regulations set by the Presidency of Meteorology and Environment ("PME") of Saudi Arabia that no longer tolerate cheaper and non-environmentally compliant methods of disposal of contaminated soils, oily sludge and slop oil. The oil exploration, storage, refining and transportation industries are being made, under new laws, increasingly accountable and responsible for the proper remediation of oil-contaminated soils and treatment of any and all oily wastes which they regularly generate providing an increased scope of prospective contract opportunities for CORRE. Through CORRE's shareholding structure and local Saudi Arabian partnership with Petroleum Chemical and Mining Company, CORRE benefits from strategic access to the Saudi Arabian market.
CORRE continues to leverage its experience and relationships with operational and strategic partners to bid for high value contracts in order to secure projects whereby it can employ, among other services, its proprietary advanced recovery and remediation equipment as well as drill cuttings systems and facilities. Accordingly, the Company is pleased to report that it has tendered for the previously announced five-year contract (see press release dated December 14th, 2012) to execute a high value project in the Gulf Region. The Company expects the customer to review the bids and announce a winner in Q2 2013 and the Company looks forward to providing more details at that time. Additionally, the Company continues to prepare for a second high value tender in the Gulf Region, similar in scope and value to an earlier tender which was awarded for $20 million in the region. The Company feels well positioned in its bids for these projects.
Mr. Lorenzo ascertained from his visit to Kuwait that KOC is expected to tender two to three new high value contracts for drill cuttings facilities in 2 to 3 different drilling locations in Kuwait in Q2 of 2013. It is CORRE's intent, through its SCM operating partnership, to submit bids for all drill cuttings tenders. Moreover, the Company is currently preparing itself for the upcoming oil lakes and SEED soil remediation tenders also forthcoming in Q2 of 2013. The Company believes that these target dates for the release of tenders by KOC have become more plausible now that KOC has completed the reorganization, staffing and noticeable expansion of its drill cuttings and environmental departments in anticipation of the release and administration of these tenders.
Upon his return to Toronto from his business trip to the Gulf Region, Mr. Lorenzo stated: "We have completed our SAR CORRE MENA LTD's budget in anticipation of the submitted and forthcoming high value drill cuttings and soil remediation tenders. We are completing the organizational structure of SAR CORRE MENA LTD and staffing our Dubai offices to assist the new international department in Norway to bid and hopefully secure and execute the forthcoming projects within the scope and specialization of our line of oil services." Mr. Lorenzo added: "The experience we are gaining from our project in Jordan and from our last year's bidding process for the SEED contracts in Kuwait as well as our new operating partnership in Saudi Arabia, position us for success this year."
Negotiations with the Company's major shareholders and strategic new partners are ongoing to fund the Company's portion of the SAR CORRE MENA LTD's 2013 budget as well as the operations and working capital of CORRE. We will keep our shareholders updated of any final developments in this regard.
CORRE is a Canadian-based company which trades on the TSX Venture Exchange under the symbol CVR. CORRE provides full cycle oil waste management solutions to the petroleum industry. 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). 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 advanced environmental solutions through strategic operating partnerships with some of the most distinguished companies throughout the world.
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 has 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.
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