VANCOUVER and BAKU, Azerbaijan, Aug. 31 /PRNewswire-FirstCall/ -- Cengroup Petroleum Corporation (PINK SHEETS: CPCO), an international oil recovery company, announces that the agreement between Cengroup and Charles Diamond/Fundamental Solutions, Inc. has been rescinded. The agreement provided for the licensing of an oil-recovery technology to be used in Baku, Azerbaijan.
Initial payments made to Charles Diamond/Fundamental Solutions, Inc. in the form of stock have been returned to Cengroup and the 5 million shares will be cancelled and returned to treasury.
The rescission also includes the company's relationship with EnviroMop LLC, formerly the exclusive licensee of the absorbent technology. David Levine, former president of EnviroMop and current Cengroup board of directors member, has agreed to take an executive role with Cengroup.
"We believe that the rescission of this agreement is in the best interests of our shareholders," says Terry Yakimovich, Cengroup's President. "There are other, more cost-efficient technologies available today that can be acquired without causing equity dilution to our shareholders."
About Cengroup Petroleum Corporation
Cengroup was developed to take advantage of an opportunity to recover surface oil in the Caspian Sea Region. Over the past five years the Company has singularly positioned itself in this lucrative region by developing relationships within the Azerbaijan government. It has been estimated that there are approximately 250 million barrels of surface oil lying on water and land in the Caspian Sea Region, with nearly 1 million new barrels of oil leaking to the surface each year. Cengroup is working with the government of Azerbaijan to reclaim the oil to productive use while environmentally restoring the land, sea and shore. For more information, go to http://www.cengrouppetroleumcorp.com/.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Cengroup's filings with Pink Sheets LLC.
CONTACT: Cengroup Petroleum Corporation, Terry Yakimovich, President, 1-866-640-CPCO (2726),
