Canadian Oilfield Solutions Corp.: Release of Financial Statements

CALGARY, ALBERTA--(Marketwired - Nov. 1, 2013) -

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Canadian Oilfield Solutions Corp. (TSX VENTURE:OTS) (the "Corporation") is pleased to announce that it has restated and re-filed its unaudited condensed consolidated interim financial statements and it's amended and restated management's discussion and analysis as at and for the interim periods ended March 31, 2012, June 30, 2012 and September 30, 2012 (the "2012 Interim Filings"); the Corporation has also filed its year-end audited consolidated financial statements and management's discussion and analysis as at and for the year ended December 31, 2012 and 2011 (the "2012 Year-end Filings"); and the Corporation has also filed its unaudited condensed consolidated interim financial statements and management's discussion and analysis as at and for the interim periods ended March 31, 2013 and June 30, 2013. The documents can be found on the SEDAR website at www.sedar.com.

While preparing the year-end financial statements for the year ended December 31, 2012, the Corporation identified the following errors reflected in previously issued unaudited condensed consolidated interim financial statements for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012. Therefore, the unaudited condensed interim consolidated financial statements for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 have been restated for the following corrections (all amounts noted in 000's):

(A) The Corporation provided project management and project financing for certain projects in Mexico. The terms of the arrangement resulted in the Corporation earning a financing fee on the advancement of funds as well as earning a share of the project's net profit for compensation of the management services provided. The Corporation had previously recorded the advancement of funds into cost of sales and repayment of advances into revenue. The Corporation has determined that the correct presentation of the transactions should have been on a net basis, whereby previous revenue and cost of sales have been reduced, by an amount equal to the funds advanced such that the restated revenue recognized consists of the financing fee and net profit only and the cost of sales does not include the advancement of funds.

(B) While correcting this presentation in the financial statements the Corporation became aware of an incorrect accrual of revenue and accounts receivable that overstated revenue and accounts receivable by $750, $372 and $370 for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 respectively, of which has been adjusted for.

(C) The Corporation advanced $1,300 to a Mexican Corporation and negotiated repayments with interest of 23%. The accrued interest was not recorded for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 and amounted to $48, $51 and $16 respectively, of which has been adjusted for.

(D) The Corporation accrued commission expenses included in cost of sales and accounts payable and accrued liabilities that was not previously recorded for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 and amounted to $39, $190 and $69 respectively, of which has been adjusted for.

The line items in the unaudited condensed consolidated financial statements affected by the corrections are as follows:

Three months ended March 31, 2012:

Three and six months ended June 30, 2012:

Below is a summary of the line items in the financial statements affected by the corrections:

Three and nine months ended September 30, 2012:

Headquartered in Calgary, Alberta, Canadian Oilfield Solutions Corp. provides an array of specialized products and services that are used in the production of oil and gas reserves.

Neither the 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.