CALGARY, July 23, 2012 /CNW/ - Petrowest Corporation (TMX: PRW)
announced today that it has entered into a binding agreement to
purchase the assets of Peejay Environmental Limited Partnership. These
assets include a lease for the landfill site located approximately 108
km north of Fort St. John in northeastern British Columbia, and the
permit and environmental assessment certificate required for the
landfill's operation. The purchase price of the assets consists of an
initial payment of $5 million and subsequent earnout payments on the
first 625,000 tons of waste accepted at the landfill.
The landfill site is licenced to receive up to 4.5 million tons of
contaminated waste. The assets to be acquired include a major building
to receive waste and a series of site improvements required for
operations. The landfill is expected to be operational within two
months of the closing of the acquisition.
As part of the transaction, Petrowest has negotiated an agreement with
the Doig River First Nation to ensure their continued support of the
project and to provide members of the First Nation with the opportunity
to participate in the direct economic opportunities associated with the
In addition, Petrowest has negotiated a master services agreement with a
major Canadian oil and gas company operating in the region to receive
their contaminated soil for the next five years, at a fixed rate for
the first year.
"We are extremely pleased to be able to expand our service offering to
our clients in the area," said Rick Quigley, Petrowest's President and
CEO. "The synergies between the landfill and Petrowest's existing
business make this an attractive transaction for us. We will be able
to use existing equipment and skills at the landfill and we expect to
be able to generate additional construction and transportation revenue
in the loading and hauling of material to the site. The benefits to
the region are also compelling: greater volumes of waste in the area
may be dealt with on an annual basis and improvements in the general
road safety in the area should result. The landfill facility will cut
down hauling distances and reduce heavy truck traffic on roads in the
region." He added: "The support of the Doig River First Nation is very
important to Petrowest as the site is situated on their traditional
lands and we certainly respect that and will work together to clean up
those lands in a timely manner."
Closing of the acquisition is subject to the transfer of the lease,
permit and environmental assessment certificate into the name of
Petrowest Environmental Services Limited Partnership, a limited
partnership established by Petrowest to acquire the assets. Closing is
expected to take place by the end of July.
Petrowest is an Alberta corporation involved in pre-drilling and
post-completion energy services as well as industrial and civil
infrastructure projects, gravel crushing and hauling for non-energy
sector customers. The Company's primary operations are based in the
Grande Prairie area of northern Alberta and in northeastern British
Forward Looking Information
This news release contains forward looking statements related to the
time required for closing the proposed acquisition, the time required
for the landfill to be operational and the expected benefits of the
transaction. These statements are based on current expectations that
involve a number of risks and uncertainties which could cause actual
results to differ from those anticipated.
SOURCE: Petrowest Corporation
For further information:
Please contact Richard Quigley, President and Chief Executive Officer, or Ian Hogg, Vice President, Corporate Affairs, at (780) 830-0881 or firstname.lastname@example.org.