Cancen Oil Canada Inc. has entered into an Asset Purchase Agreement with Four Winds Energy Services Ltd. a private company, of Calgary Alberta.

Under the Purchase Agreement, the Corporation purchased the Silver Valley Custom Treating Facility in the Gordondale area of Alberta for a purchase price of $1,800,000.

The assets consist of a Custom Treating Facility with a treater, five (5) 1000 bbl above ground storage tanks and is a candidate for a Class II disposal well. The Silver Valley Custom Treating Facility is approved to accept third-party production fluids (oil/water emulsions) for treatment. Following conversion of the Class II disposal well, the Silver Valley Custom Treating Facility will have the ability to accept third-party produced water for deepwell disposal. The facility is capable of treating 160 m3 of oil/water emulsions per day. The volume capabilities of the Class II disposal well is yet to be determined. A stand-alone blending facility will be designed to handle a minimum of 700 m3 of oil per day.

Tags: Cancen Oil Canada Inc.