Toronto, Ontario, September 9, 2011- Canadian Oil Recovery and Remediation
Enterprises Ltd. (TSX-V: CVR, OTCQX: CRVYF) (“CORRE” or the “Company”) is
providing an update on the Company’s bidding progress for three soil remediation and oil
recovery contracts (the “SEED Contracts”) tendered by the Kuwait Oil Company (“KOC”),
as well as an update on commercial developments in Saudi Arabia.
In accordance with a revised timeline set out by the KOC, CORRE, through its SAR-
CORRE MENA (“SCM”) operating partnership established with SAR AS (“SAR”), a
leading Norwegian oil waste management operating company, submitted bids for each of the
three SEED Contracts on August 7th. The total combined value of CORRE’s bids equals
approximately $270 million (approximately 75 million in equivalent Kuwaiti Dinars).
CORRE’s average bid price for each of the contracts is approximately $90 million (25
million in equivalent Kuwaiti Dinar).
Out of a total of 31 pre-qualified companies, there are only 12 total bidders for the SEED
Contracts, and each bidder is eligible to win only one contract. The bidders will be evaluated
in multiple areas, including commercial terms (price), technology and operating process,
rehabilitation, effectiveness, and health and safety standards.
“With our pricing amongst the top half of the lowest bidders, we believe we are in a
competitive position heading into KOC’s evaluation of each bidder’s technology and
operating process. The lowest price is not the single determinant factor for the award of a
contract,” commented John Lorenzo, CORRE’s CEO. “Our full scale soil remediation and
oil recovery pilot program in Kuwait, coupled with an already operational asset in ARES I
that is on the ground and ready for commercial deployment, could bring CORRE to the
forefront of this bidding process.”
Mr. Lorenzo concluded, “We are confident that our soil washing technology and operating
process is a preferred solution for KOC based on its high operating capacity (maximization
of tons per hour), low energy use, ability to recycle water and recover oil in a closed-loop
system, and its ability to remove salt from the recovered oil and treated soil resulting in an
environmentally sustainable solution for rehabilitated land.”
CORRE’s ARES I technology is based on soil washing, as opposed to other forms of soil
remediation treatment such as direct thermal desorption (a form of incineration) and
bioremediation which do not recover any oil.
CORRE expects KOC to announce the winning bidders during the fourth quarter of 2011.
These released tenders are the first in a series of SEED Contracts to be issued by KOC. The
contracts are also a precursor to larger soil remediation and oil recovery contracts with
aggregate values estimated to be in excess of $3 billion for the clean-up of the Kuwait Oil
Lakes. As previously announced, SCM, through SAR, is part of a select group of companies
that have recently been pre-qualified by the KOC as contractors approved to bid on
extensive soil remediation contracts, as well as other contracted services which include the
treatment of drill cuttings and waste management, to be released by the KOC.
In addition to the SEED Contracts, CORRE is also currently working on other commercial
opportunities. The Company is in discussion in Kuwait and Saudi Arabia for contracts to
clean and treat drill cuttings, as well as provide automated oil storage tank cleaning services.
CORRE is working diligently on completing the structuring of the Company’s Saudi
Arabian business with the parent company of Al-Najah Advanced Technology Co. Ltd.
(“NAT”) based in Jeddah, Kingdom of Saudi Arabia. NAT holds an approximate 40%
ownership interest in CORRE.
About CORRE
CORRE (www.corre.com) is a Canadian-based clean technology company that provides
innovative and complete oil waste management and environmental solutions to its
customers. 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 services through its
owned and operated Advanced Recovery Equipment Systems (“ARES”) and through
strategic operating partnerships. ARES is a platform of services and operating equipment
facilities based on proven technologies and innovative operating processes. 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).
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.
Contacts:
CORRE LTD.
Alex Gress – CFO
416-368-4027
agress@corre.com
Lindsay Cross
416-368-3050
lcross@corre.com
or
KCSA Strategic Communications
Todd Fromer / Phil Carlson / Adam Pollack
212-896-1215 / 1233 / 1232
Corre@kcsa.com