CALGARY, ALBERTA–(Marketwired – Oct. 6, 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 that it has closed the previously announced acquisition of the Swan Hills Acid Blending facility and related equipment and laboratory (collectively, the “Swan Hills Acid Blending Facility”) from Arcan Resources Ltd. (“Arcan”) enabling it to provide custom acid blending services for fracture stimulation and production optimization fluids. Fortaleza will operate the business through its wholly-owned subsidiary, BlendForce Energy Service Inc. (“BlendForce”).
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 percent 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 enhancement 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.
BlendForce continues examining other locations in western Canada and the United States where it can offer fracture stimulation and production enhancement fluids on the expansion of various resource plays in North America.
Fortaleza held its Annual General Meeting on September 30, 2014 where J. Cameron Bailey, Donald Leitch, George Watson and Roderick Frazer and Ronald McIntosh were elected to service as directors for the ensuing year. Avik Dey, who served as a member of the Board since February 2012, did not stand for re-election to pursue other business opportunities. Fortaleza would like to thank Mr. Dey for his contribution to the Corporation.
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, including that the expected sales of acid blends may not materialize.
This news 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.
President and Chief Executive Officer
(403) 398-3345 extension 2450
(403) 398-3351 (FAX)
Mr. Jamie Jeffs, CA
Chief Financial Officer
(403) 398-3345 extension 2470