Canadian Oilfields Solutions Corp.: Filing of Material Contracts
November 01 2013 - 6:21PM
Marketwired Canada
(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)
Canadian Oilfield Solutions Corp. (the "Corporation") (TSX VENTURE:OTS)
announces that it has filed material contracts on SEDAR. The documents relate to
agreements that the Corporation has entered into during the course of developing
business in Mexico. The documents can be found on the SEDAR website at
www.sedar.com.
The Corporation has entered into various agreements with Mexican companies of
which the direct translation from Spanish to English uses the term "Joint
Venture". In fact these agreements are not "joint ventures" but rather purely
contractual business arrangements between the Corporation and/or its
subsidiaries, and the Mexican counter parties. The names and locations of the
persons, companies, and projects have been redacted in compliance with
confidentiality agreements in place with clients and the Corporation's business
partners in Mexico.
A. The Corporation provides project management and project financing for
certain oilfield construction projects in Mexico. During the course of
developing the business model, the Corporation entered into an agreement
and a series of amendments with an unrelated Mexican construction
company. The agreements define the terms and conditions of fees
associated with both project management and project financing. The
agreements also defined the minimum commitment of financing that the
Corporation would provide, with initial minimums set at $5,000,000 USD
and subsequently raised to $7,000,000 USD.
B. The Corporation also provides flexible pipe sales and service in Mexico.
During the course of developing the business and introducing the product
to the market, the Corporation has entered into agreements that define
the terms and conditions of the arrangements. The Corporation advises
that during the course of business it has acted both as an agent and as
a principal in the sales and service of flexible pipe. When operating as
an agent, the Corporation records the commissions as revenues, while
when operating as a principal it records the gross revenues and gross
costs associated with the project. For the fiscal year end of 2011, the
Corporation operated under a supply and services agreement between the
Corporation and two unrelated Mexican business partners for multiple
projects. Commencing the fiscal year of 2012, the Corporation operated
under a marketing and agency agreement with an unrelated Mexican
company, whereby the Corporation was entitled to receive a commission on
the sale of the pipe products. However, this specific business
relationship as well as the overall Mexican operations has evolved
significantly, whereby the Corporation has since become the direct
distributor of the pipe product and ancillary pipe products and the
unrelated Mexican company has become an installer of the pipe products
through a sub-contracting relationship with the Corporation.
Headquartered in Calgary, Alberta, Canadian Oilfield Solutions Corp. provides an
array of specialized products and services that are used in the production of
oil and gas reserves.
Neither the 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 this release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian Oilfield Solutions Corp.
Ken Berg
President and Chief Executive Officer
(403) 543-0060
(403) 543-0069 (FAX)
kberg@cotsoilfield.com
Canadian Oilfield Solutions Corp.
Scott Hamilton
Chief Financial Officer and Corporate Secretary
(403) 543-0060
(403) 543-0069 (FAX)
shamilton@cotsoilfield.com
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