CFR Chemicals ships $600,000 order to the Middle East
01-07-2010
Diversified Industries Ltd. (DVS) is pleased to announce that CFR Chemicals Inc. (CFR)
has shipped its first significant export order. Injection equipment and chemical to fulfill a
contract to a national Kuwait company has been shipped this week. This contract
previously announced on February 18, 2009, and initially worth $600,000 in chemical
sales, has the potential for long term requirements in excess of $2.5 million annually.
The initial contract, to remove hydrogen sulphide from the customer’s pipeline, includes
the supply of a skid mounted tank and pumping system. This will enable Diversified’s
proprietary chemical “StaSweet” to be injected into the pipeline to effectively treat 55,000
barrels of oil per day over a 3 month test period. Assuming success during this trial the
company expects to then enter into a long term supply agreement that will continue for
the effective remaining life of the facility which is estimated to be 5 to 7 years.
The contract has been complex and challenging due to differing engineering standards
and export financing procedures but its successful conclusion represents a significant
opportunity for the company both in Kuwait and throughout the Middle East.
Much of the oil and gas production throughout the Middle East and Eastern Europe has
become contaminated with increasing levels of hydrogen sulphide. Most of the
infrastructure built throughout the world has been engineered to handle “sweet” oil and
gas and is unable to handle corrosive hydrogen sulphide. Diversified’s patented
chemistry as well as new formulations developed by the research and development
department of CFR Chemicals Inc. have been proven to be a safe, cost effective system
for the neutralization of hydrogen sulphide.

For more information visit www.dvsind.com or www.cfrchemicals.com

On behalf of the Board of Directors:
"Darren J. Lamothe"
_____________________________
Darren J. Lamothe, President/CEO
For investor information, please contact;
Darren Lamothe, President/CEO
Tomas Marshall, CFO
Phone: (403) 346-2149
e-mail: dlamothe@cfrchemicals.com
e-mail : tmarshall@cfrchemicals.com
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