TORONTO, May 5 /CNW/ - Canadian Oil Recovery and Remediation Enterprises
Ltd. (TSX-V: CVR) ("CORRE" or the "Company") a provider of leading edge oil
recovery and remediation technologies and services, issued its financial
results for the year ended December 31, 2008 on Thursday, April 30, 2009 and
provides herein a business update. Complete financial statements and
Management's Discussion and Analysis are available for public review at
"Consistent with management's plan for 2008, we successfully executed
against the developmental milestones CORRE set out to achieve in our first
full year of operation in preparation for the commencement of commercial
operations," said Mr. John Lorenzo, CORRE CEO. "During the past year, our
milestones included the building and full commercialization of ARES I, based
on the APEX sludge treatment technology, and securing the exclusive license to
operate ARES I in the Middle East, North Africa and Chile."
During 2008, an ARES I plant with treatment capacity of 20 tons per hour
was built, tested and shipped to Kuwait by CORRE. It is now ready for full
scale commercial deployment in Kuwait in preparation for CORRE's first
anticipated project with one of Kuwait's national oil companies. "The ARES I
plant is ideally suited to treat the sludge pits and oil lakes of Kuwait,"
said Mr. Wayne McKinnon, President of CORRE. "MENTRA, CORRE's wholly-owned
subsidiary acquired at the start of the third quarter of 2008, has been
instrumental in providing CORRE with process engineering depth, equipment
design and fabrication, as well as site planning and project management that
CORRE requires for its upcoming and expected project pipeline," continued Mr.
MENTRA continues to complete the commercialization of ARES III based on
the OS Technology to recover oil from tar sands under its global license.
"With these tools firmly in place, this is an exciting time for CORRE as
our 2008 preparation and timing now has us well positioned to capture several
projects in Kuwait and South America that are becoming available this year,"
added Mr. Lorenzo.
In early 2009, CORRE became the official technology partner of IMCO and
both CORRE and IMCO have been pre-qualified by the Kuwait Gulf Oil Company
("KGOC") as remediation service providers. IMCO is a leading Kuwaiti
engineering and construction company in the oil and gas sectors which together
with its sister company, CANAR, employ 3,000 people.
On April 18, 2009, CORRE and IMCO submitted their first tender submission
to KGOC to treat and process approximately 1.2 million barrels of oily viscous
liquids ("OVL") from Pit No. 28 in Wafra, a city situated in the southern part
of Kuwait. CORRE and IMCO are among a select group of service providers that
are capable of meeting KGOC standards that have bid for this project. If CORRE
is awarded this project it would be compensated for each barrel of clean and
recycled OVL after separating and removing the water and other solids that
have gathered in the OVL pit over time. It is expected the procurement of this
project, if awarded, and successful execution thereof will likely lead to
incremental OVL and sludge treatment projects in Kuwait and the broader Gulf
area. The results of this tender are expected during the early third quarter
On April 1, 2009, CORRE submitted to the Kuwait Oil Company ("KOC") its
extensive pre-qualification application as an oil recovery and remediation
service provider. Once pre-qualified, CORRE will be eligible to tender for
significant upcoming KOC contracts to recover oil from sludge pits and oil
lakes, as well as remediate their oil-contaminated soil.
Select Results of 2008 Operations
For the year ended December 31, 2008 CORRE generated revenues of
$2,107,763 from Mentra's established business operations since its acquisition
Total assets increased by $3,153,942 from $11,350,786 to $14,504,728 as of
December 31, 2008. Assets are primarily comprised of:
1. Cash and cash equivalents of $3,668,092;
2. Accounts receivable of $967,589 primarily related to Mentra's
established business operations; and
3. Oil Recovery Equipment of $8,421,295 being the value of the OS and
As part of cash and cash equivalents of $3,668,092 at December 31, 2008,
CORRE had working capital of $1,267,901 after fulfilling all obligations
related to the APEX equipment, including completing its commercialization and
shipment to Kuwait as part of ARES I. Additionally, this reflects completing
the fabrication of an ARES III pilot plant to treat oil sands based on the OS
Technology that is in its final stage of testing.
CORRE is a Canadian company that utilizes its proprietary Advanced
Recovery Equipment Systems ("ARES") program to provide five comprehensive
solutions for oil recovery and soil remediation. ARES I, II and IV are
commercialized technologies offering economically viable and environmentally
safe sludge treatment solutions and remediation of oil contaminated sand, soil
and solids. ARES III is currently being commercialized for the extraction of
oil from tar sands and ARES V represents a bioremediation technology in
research and development. CORRE plans to deploy ARES in the oil producing
countries of the Middle East and other regions where there is substantial
demand for its oil recovery and remediation services.
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.
For further information:
For further information: CORRE, Alex Gress, Director, Tel: (416)
309-2533, Email: email@example.com, www.corre.com; The Equicom Group, Glen
Williams, Investor Relations, Tel: (416) 815-0700 ext. 272,