CALGARY, Sept. 5, 2013 /CNW/ - Pure Technologies Ltd. ("Pure" or the "Company") (TSX: PUR) announced today that its wholly-owned subsidiary, Pure Technologies U.S. Inc. ("Pure U.S."), has been awarded a contract to provide nondestructive testing services on a portion of a major steel pipeline carrying treated drinking water within California. Pure's magnetic flux leakage ("MFL") technology is the most advanced method of metallic pipeline condition assessment on water pipelines and will be used to determine the remaining wall thickness so that the service life can be calculated. The inspection is expected to take place during the fourth quarter and the amount of the award is $1.2 million. Once completed, Pure U.S. may proceed with an additional MFL inspection in the first quarter of 2014 worth $1.1 million on another pipeline for the same customer.
"The inspection of metallic pipelines represents a significant growth opportunity for Pure," said Mark Holley, president of Pure U.S. "Metallic pipes - cast iron, ductile iron and steel - account for approximately 65% of the over 800,000 miles of water pipeline in North America according the US EPA. Historically, the Company's main growth driver has come from services related to pre-stressed concrete cylinder pipes which make up approximately 3% of the total. In addition to MFL technology, which we acquired from EMTEK in 2011, Pure has developed other solutions for the inspection of metallic pipes utilizing its existing, proven technology platforms."
Additional information on Pure's MFL technology can be found here: http://www.puretechltd.com/services/electromagnetics/magnetic_flux_leakage.shtml
Elsewhere, new work has recently commenced (or has been partially completed) in the U.S., Europe and in South Africa involving the inspection of water pipelines utilizing Pure's SmartBall® and PipeDiver® technologies. This work is expected to be completed in the third and fourth quarters and may lead to additional work moving ahead. In aggregate, the contract value of these inspections is $1.6 million.
About Pure Technologies Ltd.
Pure Technologies Ltd. is an international asset management technology and services company which has developed patented technologies for inspection, monitoring and management of critical infrastructure around the world. Pure's business model incorporates four distinct but complementary business streams:
- Sales of proprietary monitoring technologies for pipelines, bridges and structures (SoundPrint®, SoundPrint® AFO);
- Recurring revenue from data analysis and site maintenance for these technologies, and from technology licensing;
- Premium technical services including pipeline inspection, leak detection and condition assessment (P-Wave®, SmartBall®, Sahara®, PipeDiver®, PureRobotics™);
- Specialized engineering services in areas related to asset management, primarily in the area of pipeline condition assessment for water and wastewater infrastructure (Openaka Corp., Price Brothers UK Ltd, and Jason Consultants).
This release contains forward-looking statements. Forward-looking statements, without limitation, may contain the words "believes", "expects", "anticipates", "estimates", "intends", "plans", or similar expressions. Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions and the Company's actual results could differ materially from those anticipated. 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. In the context of any forward-looking information please refer to risk factors detailed in, as well as other information contained in, the Company's filings with Securities Regulators (www.sedar.com).
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SOURCE: Pure Technologies Ltd.
For further information:
To find out more about Pure Technologies Ltd. (TSX: PUR), visit our website at www.puretechltd.com. Or contact James E. Paulson, Chairman, Karen Keebler, Chief Financial Officer or Paul Moon, Investor Relations at (403) 266-6794 or e-mail to [email protected].