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 www.sedar.com.
"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. McKinnon.
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 of 2009.
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 Revenue ------- For the year ended December 31, 2008 CORRE generated revenues of $2,107,763 from Mentra's established business operations since its acquisition by CORRE. Assets ------ 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 APEX equipment. Liquidity ---------
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.
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