Cancen Oil Canada Inc. has signed an agreement whereby Cancen would acquire a 100% interest in the Kinsella Crude Oil Terminal and Blending Facility from Astra Energy Canada Inc. for a total cash purchase price of $5,000,000.
The Facility is an operating clean oil pipeline terminal and blending facility strategically located north of Hardisty, Alberta and is connected to the Bow River pipeline system in Beaver County, Alberta.
The Facility consists of surface facilities and equipment required to facilitate custom blending and terminalling of 450 m3 of sweet clean oil per day. The Facility has been in operation since 2004 and provides services to Western Canadian producers. Cancen plans to operate the Facility in its current capacity and upgrade the Facility to treat waste oil and handle waste water.
The completion of the Transaction is subject to a number of conditions, including, the Corporation completing either an equity or debt financing of not less than $5,000,000, the approval of the Transaction by the TSX Venture Exchange Inc., receipt of all necessary regulatory approval and other usual conditions.