Augusta Announces Signed Contracts for $1.4 Million
TORONTO, ONTARIO--(Marketwire - Oct. 31, 2012) - Augusta Industries, Inc. ("Augusta" or the "Corporation") (TSX VENTURE:AAO), through its wholly owned subsidiaries FOX-TEK Canada Inc.("Fox Tek") a developer and manufacturer of patented non-intrusive sensing systems and Marcon International Inc. ("Marcon") an industrial supply contractor ("Marcon"), would like to announce that its current sales pipeline of purchase orders received is approximately $1.4 million as of October 29, 2012.
Of this amount, $465,000 was derived from the sale of six (6) electric field mapping ("EFM") corrosion monitoring systems and three (3) fiber bragg grating ("FBG") optical strain monitoring technology. The remaining $935,000 comes from orders at Marcon to Sabic, Qatar Petroleum and to various government agencies of the United States such as the Departments of Defence and Interior.
The three FBG systems were purchased by a major pipeline company in Alberta for three bending strain monitoring sites on one of its pipeline. Due to the instability of the slope where the pipeline is located, the client has decided to implement Fox-Tek's innovative FBG non-intrusive strain monitoring solutions to ensure that the build-up of strain stays within acceptable boundaries.
King Fahd University of Petroleum and Minerals ("KFUPM"), one of the Kingdom of Saudi Arabia's most prestigious universities, has purchased a complete EFM monitoring system. This system was custom design to meet all of KFUPM's technical requirements, which will be used on KFUPM's test flow loop to monitor wall loss. The system will help researchers test various combinations of pipe material and chemicals with real process materials.
Enbridge Pipelines, one of North America's largest liquids pipeline companies, ordered one (1) EFM system which will primarily be used for corrosion monitoring at a location of interest at a pipeline asset. The purchase of this additional system adds to the Corporation's current fleet of EFM systems utilized by Enbridge on its pipeline network.
Two (2) EFM systems were purchased by Inter Pipeline Fund ("IPF"), adding to the Corporation's number systems utilized by IPF on its pipeline network and an additional two (2) EFM systems were purchased by one of North America's largest liquids pipeline company which system will be utilized at two locations of interest on their US pipeline assets.
"We are pleased that our clients continue to utilize the Corporation's monitoring systems for its pipeline assets," stated Allen Lone, the President of the Corporation. "Our clients continued reliance of the Corporation's systems over the past several years and their continued use of the systems is a testament to the ability of the systems to provide the information necessary for our clients to maintain its assets."
About King Fahd University of Petroleum & Minerals
King Fahd University of Petroleum & Minerals was officially established by Royal Decree on 23 September, 1963. The rapid growth of KFUPM as a leading institute in the petroleum industry is related to the rapid economic and technical development of the Kingdom of Saudi Arabia. The rapid growth of KFUPM also reflects the rising expectations of the people of Saudi Arabia, the expanding opportunities for the country's young men, and the increasing importance of the Kingdom of Saudi Arabia as a major source of the world's energy.
About Inter Pipeline Fund
Inter Pipeline Fund is a major petroleum transportation, storage and natural gas liquids extraction business based in Calgary, Alberta. Inter Pipeline is a publicly traded limited partnership that owns and operates a diversified combination of energy infrastructure assets in western Canada, the United Kingdom, Denmark, Germany and Ireland. Inter Pipeline operates approximately 6,100 kilometres of petroleum pipelines and 4.8 million barrels of storage in western Canada. These systems transport approximately 950,000 barrels per day of oil sands bitumen and conventional crude oil, representing approximately 15% of total western Canadian conventional volumes and approximately 35% of oil sands volumes.
About Enbridge Pipeline
Enbridge has become a leader in the safe and reliable delivery of energy in North America Enbridge transports energy, operating the world's longest, most sophisticated crude oil and liquids transportation system and has a significant and growing presence in the natural gas transmission and midstream businesses, and an increasing involvement in power transmission. Enbridge distributes energy, owning and operating Canada's largest natural gas distribution company, and provide distribution services in Ontario, Quebec, New Brunswick and New York State.
About the Corporation:
Through its wholly owned subsidiaries, Marcon and Fox Tek, the Corporation provides a variety of services and products to a number of clients.
Marcon is an industrial supply contractor servicing the energy sector and a number of US Government entities. Marcon's principal business is the sale and distribution of industrial parts and equipment (Electrical, mechanical and Instrumentation.) In addition to departments and agencies of the U.S. Government, Marcon's major clients include Saudi Arabia-Sabic Services (Refining and Petrochemical), Bahrain National Gas Co, Bahrain Petroleum, Qatar Petroleum, Qatar Gas, Qatar Petrochemical, Gulf of Suez Petroleum, Agiba Petroleum and Burullus Gas Co.
Fox Tek develops non-intrusive asset health monitoring sensor systems for the oil and gas market to help operators track the thinning of pipelines and refinery vessels due to corrosion/erosion, strain due to bending/buckling, and process pressure and temperature. The Corporation's FT fiber optic sensor and corrosion monitoring systems allow cost-effective, 24/7 remote monitoring capabilities to improve scheduled maintenance operations, avoid unnecessary shutdowns, and prevent accidents and leaks.
This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
Augusta Industries Inc.
CEO & CFO
(905) 338-2323 Ext 22