CARLSBAD, Calif., June 8, 2010 (GLOBE NEWSWIRE) -- Alaska Pacific Energy Corp. ("APEC "or the "Company") (OTCBB:ASKE), a public company listed on the OTC Bulletin Board in the USA, is pleased to announce it has entered into a purchase agreement to acquire all the outstanding shares and assets of Engineering Technology Inc. ("Entec") a Calgary Alberta-based, private company. Entec is an international provider of Horizontal Directional Drilling (HDD) engineering and technology development to the oil and gas industry. Entec has provided its clients with world class Design, Construction Turnkey Project Engineering and Management Services for the last three decades. Entec has applied advancements in drilling engineering and technology to develop and establish new industry standards resulting in the successful completion of more than 1000 projects worldwide. In May 2009, Entec provided the primary drilling engineering and construction management for a TransCanada Pipeline project that saw a Canadian record 42 inch pipeline successfully drilled under the Peace River in Alberta (See the Entec web page at www.entecinc.com). Entec plans to accelerate both the national and international aspect of the business.
This new agreement marks a major extension of the Oil Sands Licensing Agreement between APEC and Entec announced at the end of March 2009 (See news release dated March 29, 2010). Under that previous agreement, Entec granted Alaska Pacific Energy Corp. and any affiliates, North American License rights to its drilling solutions programs that will be used to advance oil sands recovery technology. This new agreement places APEC in the position of being able to use and license the solutions worldwide.
According to the terms of this new agreement, the Company will pay $7,000,000 and issue a total of 12,000,000 restricted common shares to the Entec shareholders at a deemed price of $0.25 per share. Additionally, APEC will raise $5,000,000 for working capital.
The President and CEO of Entec is Grant Jameson, a resident of Calgary Alberta. At the closing, Mr. Jameson, will be appointed a director of APEC. The Company has also incorporated a wholly owned subsidiary, Alaska Pacific Energy (Canada) Ltd., based in Calgary Alberta. Mr. Jameson has already been appointed CEO of the subsidiary in order to assist with the transition and maintain continuity.
The agreement is subject to a full due diligence review of Entec. Completion of the due diligence and the closing is expected by no later than August 31, 2010. With the Entec acquisition, comes new methodology for the extraction of oil from oil sands wherever they occur. APEC's goal will be to utilize our drilling solutions to enhance current oil recovery in the Alberta and Saskatchewan oil sands and in other countries and make the exploitation of shallower depth oil sands much more environmentally acceptable and cost efficient than it is at present. The management of both companies looks forward to an exciting future with this new opportunity to make the combination of APEC and Entec industry leaders in oil sands recovery.
Forward-Looking Statements
Statements, which are not historical facts, are forward-looking statements. The Company, through its management makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessary estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors, factors which could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements.