Corporate Update: Doubtful Account Receivable and Statement of Claim
CALGARY, Alberta, Aug. 09, 2018 (GLOBE NEWSWIRE) -- A wholly-owned subsidiary of Cordy Oilfield Services Inc. (“Cordy” or the “Company”) (TSX VENTURE: CKK) has received a notice and statement (the “Notice”) from the court appointed receiver and manager of Ranch Energy Corporation, OpsMobil Inc., OpsMobil Construction Inc., OpsMobil Energy Corporation Air Dallaire Ltd., 1734163 Alberta Inc., 1859821 Alberta Inc. and K.L. Capital Corp. (collectively, the “Corporations”) as to its appointment in such capacity on July 19, 2018 and that it has taken possession and control of the property of Corporations. The Notice also provides that the amount owed by the Corporations to secured creditors and unsecured creditors was $55.2 million and $25.0 million, respectively, as at July 19, 2018. The net book value of the property of the Corporation is identified in the Notice as being $105.5 million as at December 31, 2017 based on the unaudited books and records of the Corporation, which amount may not represent the fair value of such property according to the Notice. Cordy provided logistic services related to soil reclamation and remediation of BC Crown land, pursuant to General Order 2017-091 issued by the BC Oil and Gas Commission, (the “Project”) to the Corporations in the spring of 2018, and has an unsecured receivable owing from the Corporations in the amount of $765,610. Cordy is pursuing all available options for amounts owing, however timing and amount of payment is uncertain.
In addition, a subcontractor of the Project, filed a statement of claim against the Company and Cordy Environmental Inc., a wholly-owned subsidiary of the Company, seeking payment in the amount of $485,063 in respect of unpaid invoices relating to services provided on the Project, by the subcontractor, between March 24, 2018 and April 14, 2018. Cordy has engaged legal counsel to defend the claim.
Additional information on Cordy is available on our website www.cordy.ca or on SEDAR at www.sedar.com.
This news release contains certain forward-looking information and statements within the meaning of applicable Canadian securities legislation. Certain statements contained in this news release may contain such words as “anticipate”, “could”, “continue”, “should”, “seek”, “may”, “intend”, “likely”, “plan”, “estimate”, “believe”, “expect”, “will”, “objective”, “ongoing”, “project” and similar expressions are intended to identify forward-looking information or statements. In particular, this news release contains forward-looking statements including the amount of collection of the account receivable owing to the Company, and the Company’s expectation regarding the statement of claim. Although the Company believes that the expectations and assumptions on which such forward-looking information and statements are based are reasonable, undue reliance should not be placed on the forward-looking information and statements because the Company can give no assurances that they will prove to be correct. Since forward-looking information and statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oilfield services sector (i.e. demand, pricing and terms for oilfield services; current and expected oil and gas prices; exploration and development programs, weather, health, safety and environmental risks), competition, and uncertainties resulting from potential delays or changes in plans with respect to development projects or capital expenditures and changes in legislation, including but not limited to tax laws, royalties and environmental regulations, stock market volatility and inability to access sufficient capital from external and internal sources. Accordingly, readers should not place undue reliance on the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company’s financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through SEDAR at www.sedar.com. The forward-looking information and statements contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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.
