FFM Files Restated Financial Statements
(firmenpresse) - CALGARY, ALBERTA -- (Marketwire) -- 12/28/11 -- Formation Fluid Management Inc. ("Formation Fluids") (TSX VENTURE: FFM) or ("the Company") today announced that as a result of an internal review it will restate its annual consolidated financial statements as at June 30, 2011 and management discussion and analysis for the year then ended. The restatement is required as a result of an internal review that resulted in the Company's discovery of theft of cash by a former employee of the company. The employee used a combination of falsified purchase orders and supplier invoices, forged signatures and altered cheques, and altered bank statements to divert funds into her personal bank account. The Company is vigorously pursuing recovery of the funds from both the former employee and the bank that processed the transactions. Since the outcome of these claims is currently not reasonably measurable, the Company has expensed the amounts. In the event that the Company is able to recover a portion or all of the funds, the Company will recognize the recovery in the period that the final determination of the amount is made.
The restatement has resulted in a reduction of the Company's recorded amounts for receivables, prepaid expenses and equipment totaling $104,254; a reclassification of amounts of several of the Company's expense items totaling $84,462; and a provision for contingency of $188,716; resulting in a reduction in the loss for the year of $104,254. The Company has also discovered an additional theft of $18,311 in the first quarter of fiscal 2012 which will be recorded as an additional provision for contingency until recoverability is determined. The total amount of the theft was $207,027.
Full details are available in the Company's filings on SEDAR at .
About Formation Fluids
Formation Fluid Technology has developed a waste water treatment plant that uses a proprietary process to clean waste water. The system is mobile and can be scaled to process required volumes. This system treats water to meet or exceed CCME Guidelines (Canadian Environmental Quality Guidelines), resulting in reusable water that can be used for: Boilers, Frac Water, Water Floods, and Drilling Operations. Formation Fluids is seeking to service a significantly underdeveloped segment within the oil and gas industry; its waste water treatment system is intended to cost effectively deal with produced water while satisfying the need to reuse and recycle an increasing valuable resource. For more information, please visit: or contact Investor Relations at 403 887-8874.
On behalf of the Board of Directors
Wayne Smith, Chief Financial Officer
FORWARD LOOKING INFORMATION
Certain information in this news release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions. This forward-looking information includes, among other things, information with respect to the Company's beliefs, plans, expectations, anticipations, estimates and intentions. The words "may", "could", "should", "would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect", "intend", "plan", "target" and similar words and expressions are used to identify forward-looking information. The forward-looking information in this news release describes the Company's expectations as of the date of this news release.
The results or events anticipated or predicted in such forward-looking information may differ materially from actual results or events. Material factors which could cause actual results or events to differ materially from such forward-looking information include, among others, risks arising from general economic conditions and adverse industry events, risks arising from operations generally, reliance on contractual rights such as licenses and leases in the conduct of its business, reliance on key personnel, market acceptance of the Company's products and services, the need to protect intellectual property and other proprietary rights, possible failure of the business model or business plan or the inability to implement the business model or business plan as planned, fluctuations in the cost of materials, competition, environmental matters, and insurance or lack thereof.
The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company's forward-looking information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.
"Neither 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."
Contacts:
Formation Fluid Management Inc.
Investor Inquiries
1 (403) 887-8874
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Unternehmensinformation / Kurzprofil:
Datum: 29.12.2011 - 00:52 Uhr
Sprache: Deutsch
News-ID 100124
Anzahl Zeichen: 0
contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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