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OTS Divergent Energy Services Corporation

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Share Name Share Symbol Market Type
Divergent Energy Services Corporation TSXV:OTS TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Canadian Oilfields Solutions Corp.: Filing of Material Contracts

01/11/2013 10:21pm

Marketwired Canada


(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

Canadian Oilfield Solutions Corp. (the "Corporation") (TSX VENTURE:OTS)
announces that it has filed material contracts on SEDAR. The documents relate to
agreements that the Corporation has entered into during the course of developing
business in Mexico. The documents can be found on the SEDAR website at
www.sedar.com.


The Corporation has entered into various agreements with Mexican companies of
which the direct translation from Spanish to English uses the term "Joint
Venture". In fact these agreements are not "joint ventures" but rather purely
contractual business arrangements between the Corporation and/or its
subsidiaries, and the Mexican counter parties. The names and locations of the
persons, companies, and projects have been redacted in compliance with
confidentiality agreements in place with clients and the Corporation's business
partners in Mexico.




A.  The Corporation provides project management and project financing for
    certain oilfield construction projects in Mexico. During the course of
    developing the business model, the Corporation entered into an agreement
    and a series of amendments with an unrelated Mexican construction
    company. The agreements define the terms and conditions of fees
    associated with both project management and project financing. The
    agreements also defined the minimum commitment of financing that the
    Corporation would provide, with initial minimums set at $5,000,000 USD
    and subsequently raised to $7,000,000 USD.

B.  The Corporation also provides flexible pipe sales and service in Mexico.
    During the course of developing the business and introducing the product
    to the market, the Corporation has entered into agreements that define
    the terms and conditions of the arrangements. The Corporation advises
    that during the course of business it has acted both as an agent and as
    a principal in the sales and service of flexible pipe. When operating as
    an agent, the Corporation records the commissions as revenues, while
    when operating as a principal it records the gross revenues and gross
    costs associated with the project. For the fiscal year end of 2011, the
    Corporation operated under a supply and services agreement between the
    Corporation and two unrelated Mexican business partners for multiple
    projects. Commencing the fiscal year of 2012, the Corporation operated
    under a marketing and agency agreement with an unrelated Mexican
    company, whereby the Corporation was entitled to receive a commission on
    the sale of the pipe products. However, this specific business
    relationship as well as the overall Mexican operations has evolved
    significantly, whereby the Corporation has since become the direct
    distributor of the pipe product and ancillary pipe products and the
    unrelated Mexican company has become an installer of the pipe products
    through a sub-contracting relationship with the Corporation.



Headquartered in Calgary, Alberta, Canadian Oilfield Solutions Corp. provides an
array of specialized products and services that are used in the production of
oil and gas reserves.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Canadian Oilfield Solutions Corp.
Ken Berg
President and Chief Executive Officer
(403) 543-0060
(403) 543-0069 (FAX)
kberg@cotsoilfield.com


Canadian Oilfield Solutions Corp.
Scott Hamilton
Chief Financial Officer and Corporate Secretary
(403) 543-0060
(403) 543-0069 (FAX)
shamilton@cotsoilfield.com

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