CALGARY, ALBERTA -- (Marketwire) -- 06/04/12 -- Formation Fluid Management Inc. (TSX VENTURE: FFM) ("Formation Fluid" or "the Company") is pleased to announce the appointment of Ken Rose as the Chief Executive Officer, President and a director of the Company. Mr. Rose has a long career in the oil sector including both Alberta and abroad. His experience includes working in production operations for several major oil companies as well as private construction firms. Mr. Rose also has extensive management experience as the former Chief Executive Officer and President of Badger Daylighting Inc. (TSX) and as the owner and President of Eagle Horizontal Drilling Ltd. "We are very fortunate to have found a candidate for our Chief Executive Officer position who has experience in the public sector as well as operational experience in the oilfield," said Wayne Smith, Chief Financial Officer of Formation Fluid. "Mr. Rose's experience with start-up ventures and demonstrated leadership will be great assets to the Company." Mr. Rose holds a professional degree in engineering.
Formation Fluid is also pleased to announce the engagement of Gilbert Tkachuk as the Marketing Manager for the Company. Mr. Tkachuk is a well respected oilfield consultant in construction and operations and has also owned and managed several oilfield service companies. Throughout his career, Mr. Tkachuk has developed and maintained an extensive network of contacts in the various sectors of the industry. He also has a thorough understanding of the logistics associated with the manufacture and deployment of oilfield equipment. Wayne Smith, Chief Financial Officer of Formation Fluid, says, "We are very pleased to have Mr. Tkachuk on board. We look forward to him utilizing his network of contacts to enhance our marketing efforts. We believe it is also going to be of great benefit to have access to his knowledge of fabrication and commissioning of equipment as we grow the Company."
The Company also announces that further to its March 13, 2012 news release, the engagement letter with Union Securities Ltd. ("Union") under which Union was to act as the Company's agent in respect of a proposed convertible debenture financing, has been terminated and the convertible debenture financing has been cancelled. The Company thanks Union for its efforts on our behalf.
The Company is pleased to announce a non-brokered private placement of up to 15,000,000 units (the "Units") in the capital of the Company at a price of $0.08 per Unit for gross proceeds of up to $1,200,000 (the "Offering"). Each Unit will be comprised of one common share (a "Common Share") of the Company and one half of one common share purchase warrant (a "Warrant"). Each whole Warrant is exercisable to purchase one additional Common Share for a period of 12 months from the closing of the Offering at an exercise price of $0.12 per Common Share. Mr. Rose and Mr. Tkachuk each intend to subscribe for 8% of the Units of the Offering up to a maximum of 1,000,000 Units each for a total of up to 2,000,000 Units.
Formation Fluid will apply to the TSX-V for up to 22,500,000 Common Shares to be reserved for listing on the TSX Venture Exchange (the "TSX-V") as the maximum number of Common Shares issuable upon conversion of the Warrants. Pursuant to applicable securities laws, the Common Shares and Warrants will be subject to a four-month hold period from the date of issuance. The closing of the Offering is expected to occur as soon as possible and is subject to the approval of the TSX-V. Proceeds from the Offering will be used by the Company for general working capital.
Finally, the Company is announcing that Wolf Fiedler is stepping down as a director and as the Senior Vice-President of the Company. The Board would like to thank Mr. Fiedler for his commitment and assistance to the Company over the past years and wishes him well in his future endeavours.
About Formation Fluids
Formation Fluid Technology has developed a waste water treatment plant that uses a proprietary process to clean waste water. The system is mobile and can be scaled to process required volumes. This system treats water to meet or exceed CCME Guidelines (Canadian Environmental Quality Guidelines), resulting in reusable water that can be used for: boilers, frac water, water floods, and drilling operations. Formation Fluids is seeking to service a significantly underdeveloped segment within the oil and gas industry; its waste water treatment system is intended to cost effectively deal with produced water while satisfying the need to reuse and recycle an increasing valuable resource.
On behalf of the Board of Directors
Wayne Smith, Chief Financial Officer
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events, risks arising from operations generally, reliance on contractual rights such as licenses and leases in the conduct of its business, reliance on key personnel, market acceptance of the Company's products and services, the need to protect intellectual property and other proprietary rights, possible failure of the business model or business plan or the inability to implement the business model or business plan as planned, fluctuations in the cost of materials, competition, environmental matters, and insurance or lack thereof.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
Neither 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.