TORONTO, ONTARIO--(Marketwired - Nov 1, 2016) - MCW Energy Group Limited (MCW.V)(OTCQX:MCWEF) ("MCW"), a Canadian holding company involved in the development and implementation of environmentally friendly oil sands technologies, today announced terms of its discussions with APATEQ, a specialist in innovative water and wastewater treatment, to collaborate and combine portfolios in order to increase competitive advantage in the global soil remediation market. According to BCC Reports the global soil remediation market is estimated to grow from $61B in 2014 to $80B in 2019.
Following detailed discussions between MCW and APATEQ (see joint press release dated April 25, 2016), the agreement defines a collaboration on sales and implementation of soil remediation technology services. The effort will combine MCW's proprietary closed loop extraction technology with APATEQ's modular and mobile treatment plant capabilities.
Central features of the collaboration include:
- MCW grants APATEQ and affiliates a non-exclusive license for use, sale, fabricating, installing its extraction technology.
- APATEQ commits to launch certain soil remediation projects within 12 months of the signing of the Term Sheet and to begin fabrication within 24 months of signing this Agreement.
- The license is granted to APATEQ for use of MCW's extraction of hydrocarbon for mobile plants for a duration of 15 years, with an option to extend in tranches of one or five years. This does not include any of MCW's activities in oil sands.
- Royalties to MCW will range from 5% to 7% depending on factors involving technology usage of its various intellectual properties royalties paid for soil remediation calculations based on gross profits.
- Customers of APATEQ will be directed to MCW for large stationary soil remediation plants as will clients of MCW be sent to APATEQ for smaller, mobile plants.
- All mobile development costs for mobile plants will be borne by APATEQ.
- MCW will provide all technical information required for APATEQ to develop the mobile plants.
"This is an opportunity for MCW to leverage its patented, low cost, closed loop hydrocarbon separation technology and gain exposure to the $60+ billion soil remediation market with all development costs underwritten by its partner," comments Aleksandr Blyumkin, MCW chairman. "APATEQ is well-established as a one-stop solution provider for frac flowback and produced water treatment, for industrial waste water treatment and has recognized the importance of MCW's technology to develop advanced, mobile remediation systems."
APATEQ CEO Bogdan Serban comments, "MCW's extraction technology and APATEQ's know- how for packaged treatment solutions complement each other. And both companies focus on environmentally friendly solutions for the treatment of waste or wastewater. By implementing MCW's extraction technology for soil remediation, we will broaden our product portfolio and have a considerable lead in this market."
APATEQ, is based in Luxembourg, with a North American office in Spring, Texas and develops and manufactures turnkey, custom-designed frac flowback and produced water treatment systems for oil and gas field operators, compact wastewater treatment plants for demanding applications and full-solution systems for industrial wastewater. With decades of experience in the water and wastewater industry and global industrial manufacturing, APATEQ's corporate and technical team is comprised of dedicated experts whose focused goal is client satisfaction, environmental protection and water conservation. APATEQ has won several international awards, including the Frost & Sullivan Best Practices Award and the Red Herring Global 100 Award and has been selected Technology Pioneer by the World Economic Forum. http://www.apateq.com/
About MCW Energy Group
MCW Energy Group Limited is focused on value creation via the development and implementation of (i) proprietary, environmentally-friendly oil extraction technologies and remedial tailings ponds projects solutions, (ii) expanding production capacities of its now operational project in Asphalt Ridge, Utah, and (iii) the formation of joint venture opportunities with private and governmental entities countries who have extensive deposits and knowledge in both, oil sands/shale and gas deposits in both conventional and unconventional projects. MCW has a management team comprised of experienced individuals in upstream, and downstream sectors. http://www.mcwenergygroup.com/
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward-looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, the execution of a definitive agreement between MCW and APATEQ, the approval, if required, of any transaction between MCW and APATEQ, the commercial viability of the technology and the extraction plant, economic performance and future plans and objectives of MCW, and the commercial production of oil from MCW's oil sands extraction plant in Asphalt Ridge, Utah. Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although MCW believes that the expectations reflected in forward-looking statements are reasonable, they can give no assurances that the expectations of any forward-looking statements will prove to be correct. Except as required by law, MCW disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.