Gen III Oil Corp. announced the signing of a purchase and sale agreement with Elbow River Marketing Ltd., for the majority of Gen III’s finished products from its first re-refinery being constructed in Bowden, Alberta, Canada.
Under the terms of the PSA, Elbow River will purchase the majority of Gen III’s Bowden plant production and provide rail and truck transportation from the Bowden plant to Elbow River’s customers.
Based on independent third-party marketing studies, and today’s commodity market prices, Gen III estimates total sales over the initial five-year term of the PSA to be in excess of CAD760 million (USD623 million).
In March, the company previously reported estimated annual recurring revenue of CAD159 million (USD130 million), with EBITDA in excess of CAD100 million (USD82 million).
Revised first year projected sales, based on continually rising commodity pricing, are now CAD168 million (USD137 million).
“We are proud to enter into this agreement with Elbow River as their reputation, expertise and stature in the lubricant, marketing and distribution industry in North America assure ourselves, and our shareholders, the long-range security that our high-quality base oils will be marketed by a premier corporation that will see us realize maximum value for our products,” said CEO Greg Clarkes.