CALGARY, June 16, 2014 /CNW/ - Pason Systems Inc. (TSX: PSI) announced
today that is has executed a joint venture agreement with Rawabi
Holding Company Limited ("Rawabi") that determines the terms and
conditions for the formation of Rawabi Pason Company Limited. The newly
formed company will be registered under the laws of the Kingdom of
Saudi Arabia.
Under the terms of the agreement, each of Rawabi and Pason will own 50%
of the issued and outstanding stock of the company and shall each
nominate two individuals to the board of directors.
The new company will be the exclusive distributor of Pason's industry
leading data management systems for drilling rigs in the Kingdom of
Saudi Arabia and will serve as service provider for Pason in certain
countries in the region.
Commenting on the agreement, Mr. Marcel Kessler, President and Chief
Executive Officer of Pason stated, "We believe that there is a
significant market opportunity for Pason products and services in the
Kingdom of Saudi Arabia and the broader Gulf area. We are delighted to
deepen our relationship with Rawabi, a well-respected and capable
partner with significant experience serving the needs of customers in
the region as well as working with international service companies
through joint ventures."
Pason Systems Inc.
Pason Systems Inc. is a leading global provider of specialized data
management systems for drilling rigs. Our solutions, which include data
acquisition, wellsite reporting, remote communications, and web-based
information management, enable collaboration between the rig and the
office. Pason's common shares trade on the Toronto Stock Exchange under
the symbol PSI.
Certain information regarding the Company contained herein may
constitute forward-looking information under applicable securities
law. "Believe", as used herein, identifies such forward-looking
information and statements, along with any other similar words used to
describe non-factual statements, such as "may", "should", "will",
"estimate", "project", "outlook", "forecast". Forward-looking
statements in this document may include statements, express or implied,
regarding the opportunity for Pason products in the Kingdom of Saudi
Arabia and in the broader Gulf area and the anticipated business
prospects and financial performance related to those opportunities;
expectations or projections about future strategies and goals for
growth and expansion; and expected and future cash flows and revenues. These forward-looking statements are based upon various underlying
factors and assumptions, including those with regards to the state of
the economy and the oil and gas exploration and production business, in
particular; the Company's business prospects and opportunities;
geopolitical events; decisions made by the Organization of Petroleum
Exporting Countries; estimated demands for Pason's product and services
and estimates of the financial and operational performance of Pason.
Forward-looking information and statements are subject to known or
unknown risks and uncertainties that may cause actual results to differ
materially from those anticipated or implied in the forward-looking
information and statements. Risk factors that could cause actual
results or events to differ materially from current expectations
include, among others, the ability of Pason and the newly formed
company to successfully implement its strategic initiatives and whether
such strategic initiatives will yield the expected benefits, the
operating performance of Pason's assets and businesses, the demand in
the jurisdictions available to the newly formed company, the price of
energy commodities, competitive factors in the energy industry, changes
in laws and regulations affecting Pason's businesses, technological
developments, and general economic conditions.
Readers are cautioned not to place undue reliance on forward-looking
statements as there can be no assurance that the plans, intentions or
expectations upon which they are placed will occur. Such forward
looking statements, although considered reasonable by management as of
the date hereof, may prove to be incorrect and actual results may
differ materially from those anticipated. Forward-looking statements
contained in this press release are expressly qualified by this
cautionary statement.
Additional information on risks and uncertainties and other factors that
could affect Pason's operations or financial results are included in
Pason's reports on file with the Canadian securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com) or through Pason's website (www.pason.com). Furthermore, the forward looking statements contained in this news
release are made as of the date of this news release, and Pason does
not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new
information, future events or otherwise, except as expressly required
by securities law.
SOURCE Pason Systems Inc.
