CALGARY, ALBERTA–(Marketwired – Aug. 5, 2014) –
THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES.
Fortaleza Energy Inc. (“Fortaleza” or the “Corporation”) is pleased to announce it is entering into the oil and gas service business providing fracturing and stimulation fluid blending services operating under the name Blendforce Energy Services Inc. (“Blendforce”). Fortaleza, through its wholly owned subsidiary Blendforce, has entered into an agreement with StimSol Canada Inc. (“StimSol”), a wholly owned subsidiary of Arcan Resources Ltd. (“Arcan”), to lease its Swan Hills Acid Blending facility, all related equipment and laboratory, to provide custom acid blending services for fracture stimulation and production optimization fluids. As part of the agreement, StimSol will also be providing all of its personnel to assist Blendforce with its business. Blendforce has a right of first refusal to acquire the Swan Hills Acid Blending facility and related equipment and laboratory which can be exercised if Arcan completes or abandons its arrangement agreement with Aspenleaf Energy Limited (“Aspenleaf”) previously announced on June 23, 2014.
The decision to pursue this business opportunity is driven by the active development of a light oil non-conventional resource play of the Beaverhill Lake complex being actively pursued by a number of operators. Multi-stage fracturing is being done with 28% acid blends. In addition, the Swan Hills Acid Blending facility is located in an area where there is significant industry activity pursuing deep basin unconventional plays such as the Montney and Duvernay plays which utilize acid spearhead blends for the completion of each well.
There are approximately 45,000 active producing wells in the immediate service area of the Swan Hills Acid Blending facility, many of which require stimulation and enhance fluids for remediation. A key part of the service offering of Blendforce will be providing custom blending and fluid supply for enhancement and stimulation of producing wells.
Mr. J. Cameron Bailey President and CEO of Fortaleza said “this business opportunity provides Fortaleza with an opportunity to participate in the growing development of both oil and natural gas non-conventional resource plays in Western Canada as well as provide a base level of business from existing producing wells.”
Caution to Reader
This news release contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by Fortaleza at the time of preparation, may prove to be incorrect. The actual results achieved in future periods will vary from the information provided herein and the variations may be material.
The common shares of Fortaleza have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The common shares of Fortaleza have not and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
Mr. J. Cameron Bailey
President and Chief Executive Officer
(403) 398-3345 extension 2450
(403) 398-3351 (FAX)
Fortaleza Energy Inc.
Mr. Jamie Jeffs, CA
Chief Financial Officer
(403) 398-3345 extension 2470