CRL announces $US 6 million Dubai joint venture.CALGARY, Alberta--(BUSINESS WIRE)--Dec. 27, 1995--CANADIAN CHEMICAL RECL RECL Rural Electrification Corporation Limited (New Delhi, India) (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). : CRL CRL - Carnegie Representation Language. Carnegie Group, Inc. Frame language derived from SRL. Written in Common LISP. Used in the product Knowledge Craft. ) CRL announces that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , CRL CYPRUS Inc. Limited ("CRL CYPRUS") has executed a US $6 million Joint Venture Agreement with a Dubai partner (the "JV Partner") to market CRL's mobile reclamation units and services throughout the Middle East and Arabian Gulf Arabian Gulf: see Persian Gulf. States (the "Region"). CRL CYPRUS will sell the units to the Joint Venture of which it is a party. CRL CYPRUS estimates that it will obtain a profit of approximately US $875,000 or CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $1,225,000 on the sale of each reclamation unit. The Corporation anticipates that the first unit will be delivered by June, 1996 and subject to making modification in response to the Regional market, a second unit is expected to be delivered shortly thereafter. In any event, the second unit and a third unit are anticipated to be delivered by June 1997. The possibility exists for further units to be delivered. Under the terms of the agreement, the JV Partner has agreed to pay US $6,000,000 within three years as a capital contribution which will entitle it to a 50 percent equity interest in the Joint Venture. CRL CYPRUS will own the other 50 percent interest in the Joint Venture and in all of the assets acquired by the Joint Venture. CRL CYPRUS is not required to contribute any funds to the Joint Venture. The Joint Venture will use the mobile units to provide chemical reclaiming services to gas processing, oil refining and petrochemical plants in the Region. Net revenues of the Joint Venture, after payment of all operating costs and expenses, will be allocated 40 percent to CRL CYPRUS and 60 percent to the JV Partner, until the JV Partner has been allocated net revenues equal to its capital contribution. Thereafter net revenues will be allocated 50 percent to CRL CYPRUS and 50 percent to the JV Partner. The Joint Venture Agreement provides for the marketing of CRL proprietary technology and the provision of chemical reclaiming services in all key oil producing states in the Region. The Joint Venture will also market proprietary corrosion inhibition chemicals developed by CRL's U.S. based subsidiary CATACHEM INC. The principals of the JV partner include Salah Bin Zall, a prominent Dubai citizen with several established businesses in the Region and close ties to several key potential customers, and Roger Haines, an expatriate Canadian with a proven track record of successful operations in the Region with international oil and gas producers. Mr. Bin Zall currently operates a successful reclaiming business in the Region which reclaims and safely disposes of hydrocarbon contaminated contaminated, v 1. made radioactive by the addition of small quantities of radioactive material. 2. made contaminated by adding infective or radiographic materials. 3. an infective surface or object. ballast water discharged by oil tankers prior to loading their cargo of oil. Initial market studies conducted by the Joint Venture Partner show a substantial market potential with a number of world scale plants in the Region that would significantly benefit from the use of the Canadian Chemical Reclaiming technology and the CataChem product line. The Joint Venture expects to proceed quickly to finalize specifications for construction of the initial unit, and to become operational as soon as possible. Pre-marketing efforts will commence immediately. "CRL is an Alberta based corporation offering chemical reclamation services to the natural gas processing Natural gas processing plants, or fractionators, are used to purify the raw natural gas extracted from underground gas fields and brought up to the surface by gas wells. The processed natural gas, used as fuel by residential, commercial and industial consumers, is almost pure and petrochemical refining industries through the utilization of its patented in-house developed technology, with offices in Brooks, Alberta and Houston, Texas and a sales presence in Calgary, Alberta." Approved on behalf of the Board of Directors by - Elson J. McDougald, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. CONTACT: Mr. Elson J. McDougald Chairman and CEO or Mr. Todd Beasley President and COO or Mr. Tait White CFO See Chief Financial Officer. 713/781-2611 403/362-6229 403/362-7505 (Fax) THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE. REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston 617-236-4266 or |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion