VANCOUVER, BRITISH COLUMBIA - Canada Energy Partners Inc. (the "Company") is pleased to announce that it has entered into an agreement with a major operator (“Disposer”) in northeast British Columbia to dispose of produced water.
The agreement is for a one year term. The Disposer is responsible for delivery of the water to the Company’s disposal facility. Disposal is on a “best efforts” basis with no penalty for failure to dispose. Disposal operations are expected to begin in January 2017.
The Company believes that this commercial arrangement will generate net revenues in the next year of $700,000 to $1,900,000 depending on disposal volumes, operating costs, and well performance.
China Exploration Effort
The Company has yet to secure a farm-in/joint venture in China. Significant contacts have been made. The Company intends to test the jetcav technology in the U.S. and then continue its efforts in China.
Peace River Abandonment
The Company has removed the gas plant and has plugged all of its wells on the Peace River CBM Project except for the water disposal well. Reclamation of the surface locations are approximately 80% completed. The Company has recouped approximately $350,000 from its abandonment cash deposit with the British Columbia Oil & Gas Commission (“OGC”) and expects to netback an additional $400,000 of cash from the OGC over the next 9 months.
Cavitation Technology Update
Construction of the first jetcav tool should be complete by the end of November 2016. The Company is negotiating on an initial test location on a coalbed methane property in the U.S.
The Company has applied for a patent covering its technology.
The Company currently has approximately $296,000 of working capital which includes $191,101 of payables owed to two members of the management team.
On behalf of the Board of Directors of
Canada Energy Partners Inc.
President & CEO
For more information, please contact:-
CANADA ENERGY PARTNERS INC.
3123-595 Burrard St.
Vancouver, BC V7X 1J1
Main Phone: (604) 609-6134 / Facsimile: (604) 609-6144
John Proust, Chairman
Direct Phone: +1 604.609.5130
Ben Jones, President and CEO
Direct Phone: +1 225.388.9900 ext 101
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” and other similar words or statements that certain events or conditions “may” or “will” occur, including, without limitation, estimated revenues.
Forward-looking statements 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. These factors include, without limitation, regulatory approvals, mechanical integrity of the water disposal well, receptivity of the disposal zone, variability of operating costs, risks associated with oil and gas production and exploration, retention of and ability to attract company personnel, volatility of commodity prices, currency and interest rate fluctuations, environmental risk, inability to access sufficient capital from internal and external sources and changes in legislation, including income tax, environmental and regulatory matters.
This press release, in particular the information in respect of estimated revenues, may contain future-oriented financial information or financial outlook within the meaning of applicable securities laws. Such future-oriented financial information or financial outlook has been prepared for the purpose of providing information about management’s reasonable expectations as to the anticipated results of its proposed business activities. Readers are cautioned that reliance on such information may not be appropriate for other purposes.
The forward-looking statements contained in this press release are made as of the date hereof, and the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by law.