EDMONTON, Alberta, June 19, 2006 (PRIMEZONE) -- Mr. Andrew Male, Vice President and Director of COSCO ESP Inc., (Pink Sheets:CCPI) ("COSCO" or the "Company"), announces the signing of a Cooperation / Exclusivity Agreement (the "Agreement") with Mass Energy Services Ltd. ("MASS") of Calgary, Alberta.
The Agreement grants COSCO the exclusive right to supply its oilfield products and equipment to MASS for the express purpose of transacting business with one specific customer. The Agreement encompasses an exclusive territory in the Middle East but allows COSCO to pursue business with other companies in the territory that are either existing customers or are prospective customers.
The purpose of the Agreement is to ensure regular and predictable product provision to facilitate the ongoing operations of the specific customer in its oilfield equipment requirements. Such an arrangement is considered to be highly beneficial to all parties and normalizes the procurement process.
The specific customer named in the agreement is a large multinational oil and gas corporation that is publicly traded on the New York Stock Exchange and which reported revenue of EUR 41.6 billion in 2004 and operating revenue of EUR 4.5 billion. This customer employs 32,000 people worldwide and operates in a number of countries in which COSCO is pursuing additional business.
The Agreement terms are governed by sales quotas expressed in $Millions and time periods the Company believes to be advantageous. COSCO recently announced a $265,000 contract with MASS in February in advance of this Agreement and is very enthusiastic about the ongoing business opportunities it anticipates will become available as a result of the Agreement.
COSCO ESP Inc. is publicly traded on Pink Sheets under the symbol "CCPI", and is an established manufacturer and service provider of down-hole Electric Submersible Pump related equipment in the oil and gas industry. The Company's advanced technology oilfield pumping and monitoring equipment allows for more efficient extraction of oil from new and existing underground oil reservoirs. COSCO is active in several countries in the Middle East as well as Africa, Russia, China and Southeast Asia.
The COSCO ESP logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2346
No Stock Exchange has reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release, which has been prepared by management. Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined within the "safe harbor" provision as contained in the private securities litigation reform act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results.