Cdn Oilfield wins $1.1-million (U.S.) Ansi 900 order
2012-06-26 09:16 ET - News Release
Mr. Phil D'Angelo reports
COTS RECEIVES 2 PURCHASE ORDERS FOR FLEXIBLE PIPE & ACCESSORIES
Cdn Oilfield Technologies & Solutions Corp.'s 100-per-cent wholly owned Mexican subsidiary, Cdn Oilfield Technologies & Solutions S de RL de CV, has received a purchase order for $1.1-million (U.S.) for the supply and installation of 12.5-kilometre, four-inch Ansi 900 flexible pipe and connectors to a third party contractor under contract to the state-owned oil and gas producer Pemex. As agreed between the parties, COTS Mexico will provide products, technical expertise and project management services. An initial 50-per-cent cash deposit has been received with the balance upon delivery on or about July 13, 2012.
Second flexible pipe project
On Nov. 28, 2011, the corporation announced receipt of a purchase order to supply and install 17.4 kilometres of flexible pipe and connectors to a third party contractor. Recently, an additional 8.8 km of flexible pipe have been delivered in Mexico as part of this continuing project. To date, 6.69 km of flexible pipe have been installed with a total of 15.49 km being delivered. The remaining balance will be ordered once the current installation is nearing completion.
Terra 114
The Terra 114 onshore drilling platform and road construction project is nearing completion. Progress payments have already been received with further payments expected between July 15, 2012, and Sept. 1, 2012. The project was a complete success with overall revenues estimated at 120 million pesos (approximately $8.7-million (U.S.) based on today's currency exchange rates). Additional projects are currently under review.
Other construction projects
As announced on June 5, 2012, two of the three construction projects (Cardenas 627 and Paredon 501) are now complete and pending payment. The third larger project Tecominoacan 846 is expected to be completed over the next 20 days. Approximately 25.5 million pesos (approximately $2-million (U.S.) based on today's currency exchange rates) are estimated in total revenue from these three projects.
Phil D'Angelo states: "We are very pleased with the overall performance of the business in Mexico. One year ago, the corporation had a vision to turn a failing Mexican business into a revenue-driven profitable division. Now we have taken this vision and turned it into a reality. By implementing strict policies, quality control and payment processes, the execution of our business model has proven to be efficient and sustainable. To accomplish this in such a short time is unheard of among foreign entities wanting to implement business in Mexico. We will continue to focus on growth based on our proven successes."
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