Press release from CNW Group
Mullen Group Ltd. signs memorandum of understanding with northern business partners
Thursday, September 27, 2012
OKOTOKS, AB, Sept. 27, 2012 /CNW/ - (TSX:MTL) Mullen Group Ltd. ("Mullen Group" and/or the "Corporation") announced today that it has entered into a memorandum of understanding ("MOU") with two northern business partners to provide oilfield services, transportation and logistics services in the Sahtu Settlement Area in the Northwest Territories ("Sahtu Region"). The other two parties to the MOU are HCI Holdings Ltd. ("HCI Holdings") and Red Dog Mtn. Contracting Ltd. ("Red Dog") both of which are long standing organizations situated in Norman Wells and Tulita, Northwest Territories.
Mullen Group, through its operating subsidiaries, has extensive experience providing oilfield services, transportation and logistics services that has been earned through many years of working with and supporting northern aboriginal communities in conjunction with energy companies in Northern Canada. Importantly, HCI Holdings and Red Dog are strategically located in key resource plays in the Canol Shale Oil Region where it is expected there will be significant investments made by energy companies in the responsible exploration and development of oil and gas fields over the next number of years.
The MOU contemplates the creation of Canol Oilfield Services Ltd., a stand alone company, with Mullen Group being a 45 percent shareholder and HCI Holdings and Red Dog combining to own the remaining 55 percent of the new entity. It is expected that Mullen Group's experience in servicing the energy sector and the investment of equipment, capital and leadership support will compliment HCI Holdings and Red Dog's strategic service offerings in the Sahtu Region and specifically support the responsible economic development of the Sahtu Region as outlined in the Benefits Agreements amongst Tulita District Land Corporations and various energy companies in the Sahtu Region.
"We are very pleased to announce this new business opportunity. As many know we have worked closely with aboriginal partners in Northern Canada for many years and the commitments and investments we have made in the communities in the north have positioned us as a key partner in the development of the oil and gas sector in Northern Canada for years to come. Specifically, we are excited to be working with David Hodgson from HCI Holdings and Eddy McPherson from Red Dog as they bring a tremendous amount of knowledge and expertise to this new business arrangement. We are also very pleased that we have been able to coordinate the timing of this important announcement with the Sahtu Exploration Readiness Session that was held this week in Norman Wells," said Murray K. Mullen, Chairman and Chief Executive Officer of Mullen Group.
This news release may contain forward-looking statements that are subject to risk factors associated with the oil and natural gas business and the overall economy. Mullen Group believes that the expectations reflected in this news release are reasonable, but results may be affected by a variety of variables. Mullen Group relies on litigation protection for "forward-looking" statements. Mullen Group is a company that owns a network of independently operated businesses. Today the Mullen Group is recognized as the largest provider of specialized transportation and related services to the oil and natural gas industry in western Canada and as one of the leading suppliers of trucking and logistics services in Canada - two sectors of the economy in which Mullen Group has strong business relationships and industry leadership. Mullen Group provides management and financial expertise, technology and systems support to its independent businesses. Mullen Group is a publicly traded corporation listed on the Toronto Stock Exchange under the symbol "MTL". Additional information is available on our website at www.mullen-group.com or on SEDAR at www.sedar.com.
SOURCE: Mullen Group Ltd.
For further information:
Mr. Murray K. Mullen - Chairman of the Board and Chief Executive Officer
Mr. Stephen H. Lockwood - Co-Chief Executive Officer and President
Mr. P. Stephen Clark - Chief Financial Officer
121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3