TORONTO, ONTARIO--(Marketwired - Sept. 8, 2014) - Canadian Oil Recovery and Remediation Enterprises Ltd. (TSX VENTURE:CVR) ("CORRE" or the "Company") is pleased to announce that it has entered into an equipment lease agreement ("Agreement") with HERA AG Ambiental S.L. ("HERA") to lease its ARES I soil washing plant presently stored in Kuwait pending deployment in future soil remediation projects. HERA is currently executing the soil remediation SEED project that was awarded to HERA by the Kuwait Oil Company in 2010-2011. HERA chose to lease and add CORRE's ARES I soil washing plant to their current facility in Kuwait for the purpose of increasing their overall soil washing capacity.
The term of the Agreement is for 19 months. In the period of the first seven months of the term of the Agreement ("Initial Period"), HERA will be removing ARES I from storage, making any necessary electrical and mechanical repairs and upgrading the soil washing capacity of ARES I. Under the terms of the Agreement, all repairs, maintenance and upgrading costs which also include US $1,014,000 for the purchase of new higher capacity pumps, parts and components, will be paid by HERA. Furthermore, HERA will pay CORRE a one-time payment of US $80,000 to cover the lease and security deposit of ARES I for the Initial Period. Thereafter, and for a period of one year, HERA will start paying CORRE monthly lease payments calculated on the basis of a fixed daily rate of US $690 plus US $2.92 per cubic meter of oil-contaminated soil washed using the upgraded ARES I on condition that a minimum of 5,000 cubic meters and a maximum of 7,000 cubic meters of oil-contaminated soil is washed per month.
The Agreement further provides that any technology enhancements and modifications made by HERA to the ARES I plant will be the joint intellectual and material property of CORRE and HERA.
The Agreement includes a provision which deals with an option for HERA to purchase the upgraded ARES I at the end of its term for US $1.5 million. This option excludes the sale of centrifuges and other equipment, parts and components of an approximate total value of US $2.0 million that are presently part of ARES I. The option to purchase ARES I is subject to review and approval by the TSX Venture Exchange.
"We are pleased that HERA has elected to lease our ARES I soil washing plant to increase the soil washing capacity of their Kuwait facility. We hope that this Agreement will be a first step in the development of a closer strategic alliance between CORRE and HERA who has been gaining invaluable experience in the remediation of a wide variety of oil-contaminated soil and fines in Kuwait." stated Mr. John Lorenzo, the Company's CEO. "I believe that CORRE will be able to add to its soil remediation experience and knowledge from HERA as HERA upgrades, enhances and utilizes the technology of ARES I for their future mutual benefit."
About CORRE
CORRE is a Canadian-based oil services company which trades on the TSX Venture Exchange under the symbol CVR. CORRE provides full cycle oil waste management solutions to the petroleum industry. 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). 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 advanced environmental solutions through strategic operating partnerships with some of the most distinguished companies throughout the world.
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