Flint Launches New Joint Venture Company, "Flint InnerArmor"
Mar 26, 2010
(TSX - FES)
CALGARY, March 26 /CNW/ - Flint Energy Services Ltd. of Alberta ("Flint") and Sub-One Technology Inc. of California ("Sub-One") have entered into an agreement to form a new jointly owned company to produce and market a revolutionary hard surfacing treatment called InnerArmor(R) technology. Owned 51 percent by Flint and 49 percent by Sub-One, the company will operate in North America and provide surface treatment services to clients in the oil and gas industry. Flint anticipates its initial investment in the first year to be up to $7 million. A portion of the investment will be used to purchase Sub-One shares. InnerArmor protects metallic surfaces from wear, abrasion, corrosion, erosion, scaling and friction, to extend surface life and reduce maintenance costs. A technological breakthrough that combines plasma enhanced chemical vapour deposition (PECVD) with hollow cathode plasma immersion ion processing (HCPIIP) - InnerArmor grows a very hard, durable, diamond like surface on the inside of pipes, valves, elbows, and other parts. By selecting a benign process without the toxic substances required for expensive exotic alloy steels or other metal surface coatings, clients avoid high costs and wasted energy. InnerArmor technology has the potential to be an industry game changer.
Bill Lingard, Flint's President and CEO, commented, "Flint InnerArmor will deliver an excellent solution to the challenge of corrosion and abrasion across our entire customer base. Sub-One has pioneered this revolutionary surface treatment process, and our partnership allows Flint to quickly bring its benefits to our clients. I believe this green technology will provide large material and operational cost reductions, while greatly reducing environmental footprint. I am very impressed with the people and technology at Sub-One, and we are excited about the potential of Flint InnerArmor."
Flint InnerArmor will operate as part of Flint's Production Services business segment in the United States and Canada, sharing resources and facilities as required. Both Flint and Sub-One will transfer key employees into the company. Many synergies exist between InnerArmor technology and all four of Flint's operating segments, particularly the Production Services and Maintenance Services businesses. Flint is already fabricating customer components that are treated with InnerArmor technology. Flint InnerArmor is expected to have surface treatment operations in Alberta within six months.
"Sub-One is excited about forming this joint venture with Flint, a market leader in North American energy services," said Andrew Tudhope, CEO of Sub-One Technology. "We are looking forward to tackling applications in the Oil Sands, Heavy Oil, and other areas where customers are struggling with significant downtime due to frequent component failures. By extending component life, InnerArmor technology will improve performance by reducing downtime and operational costs."
Flint Energy Services Ltd. is a market leader providing an expanding range of integrated products and services for the oil and gas industry including: production services; infrastructure construction; oilfield transportation; and maintenance services. Flint, with more than 10,000 employees, provides this unique breadth of products and services through over 60 strategic locations in the oil and gas producing areas of Western North America, from Inuvik in the Northwest Territories to Mission, Texas on the Mexican border. Flint is a preferred provider of infrastructure construction management, module fabrication, maintenance services for upgrading, and production facilities in Alberta's oil sands sector. www.flintenergy.com
Sub-One Technology is the market leader in advanced treatments for internal surfaces. Its InnerArmor(R) process applies a high performance, chemically inert, protective treatment which reduces operational costs associated with corrosion, erosion and abrasive wear. Based in Pleasanton, California, the company works with strategic partners to offer surface treatment services to Fortune 500 companies in energy, automotive, and other industries. Founded in 2004, Sub-One Technology is a privately held company backed by Chevron, General Electric, Nomura, and Advanced Technology Ventures. www.sub-one.com
FORWARD LOOKING STATEMENTS
Certain statements in this news release are "forward-looking statements", which reflect current expectations of the management of Flint regarding future events or Flint's future performance. All statements other than statements of historical fact contained in this news release may be forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements. Flint believes that the expectations reflected in such forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements are made as of the date of this news release and Flint assumes no obligation to update or revise them to reflect new events or circumstances, except as expressly required by applicable securities law. Further information regarding risks and uncertainties relating to Flint and its securities can be found in the disclosure documents filed by Flint with the securities regulatory authorities, available at www.sedar.com.