Press release from CNW Group
Petrowest Announces Agreement to Acquire Landfill Site in Northeastern British Columbia
Monday, July 23, 2012
Petrowest Announces Agreement to Acquire Landfill Site in Northeastern British Columbia08:00 EDT Monday, July 23, 2012 CALGARY, July 23, 2012 /CNW/ - Petrowest Corporation (TMX: PRW) announced today that it has entered into a binding agreement to purchase the assets of Peejay Environmental Limited Partnership. These assets include a lease for the landfill site located approximately 108 km north of Fort St. John in northeastern British Columbia, and the permit and environmental assessment certificate required for the landfill's operation. The purchase price of the assets consists of an initial payment of $5 million and subsequent earnout payments on the first 625,000 tons of waste accepted at the landfill. The landfill site is licenced to receive up to 4.5 million tons of contaminated waste. The assets to be acquired include a major building to receive waste and a series of site improvements required for operations. The landfill is expected to be operational within two months of the closing of the acquisition. As part of the transaction, Petrowest has negotiated an agreement with the Doig River First Nation to ensure their continued support of the project and to provide members of the First Nation with the opportunity to participate in the direct economic opportunities associated with the landfill. In addition, Petrowest has negotiated a master services agreement with a major Canadian oil and gas company operating in the region to receive their contaminated soil for the next five years, at a fixed rate for the first year. "We are extremely pleased to be able to expand our service offering to our clients in the area," said Rick Quigley, Petrowest's President and CEO. "The synergies between the landfill and Petrowest's existing business make this an attractive transaction for us. We will be able to use existing equipment and skills at the landfill and we expect to be able to generate additional construction and transportation revenue in the loading and hauling of material to the site. The benefits to the region are also compelling: greater volumes of waste in the area may be dealt with on an annual basis and improvements in the general road safety in the area should result. The landfill facility will cut down hauling distances and reduce heavy truck traffic on roads in the region." He added: "The support of the Doig River First Nation is very important to Petrowest as the site is situated on their traditional lands and we certainly respect that and will work together to clean up those lands in a timely manner." Closing of the acquisition is subject to the transfer of the lease, permit and environmental assessment certificate into the name of Petrowest Environmental Services Limited Partnership, a limited partnership established by Petrowest to acquire the assets. Closing is expected to take place by the end of July. About Petrowest Petrowest is an Alberta corporation involved in pre-drilling and post-completion energy services as well as industrial and civil infrastructure projects, gravel crushing and hauling for non-energy sector customers. The Company's primary operations are based in the Grande Prairie area of northern Alberta and in northeastern British Columbia. Forward Looking Information This news release contains forward looking statements related to the time required for closing the proposed acquisition, the time required for the landfill to be operational and the expected benefits of the transaction. These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. SOURCE: Petrowest CorporationFor further information: Please contact Richard Quigley, President and Chief Executive Officer, or Ian Hogg, Vice President, Corporate Affairs, at (780) 830-0881 or firstname.lastname@example.org.