Petrospec Engineering Aquires Qorex LLC

News Release

Edmonton, Alberta, Canada - May 23, 2012

Petrospec Engineering Ltd. acquires QOREX LLC

Petrospec Engineering Ltd. (“Petrospec”) is pleased to announce their acquisition of QOREX, LLC (“QOREX”).
Petrospec, established in 1997 and based in Edmonton, Alberta, Canada, is the leading provider of turn-key Reservoir Monitoring solutions to unconventional oil & gas companies in the Canadian oil sands and emerging unconventional resources globally. Petrospec designs, manufactures and installs down hole pressure, temperature and flow monitoring equipment for thermal heavy oil applications. Petrospec also provides well optimizing, petroleum engineering and field services to oil production companies across the globe.

QOREX, formed in 2007 and based in Rocky Hill (Hartford), Connecticut, USA, is a technology leader in the design, engineering, and supply of harsh environment fiber optic sensing systems in oil and gas and emerging geothermal wells. The QOREX founders have over 50 years of combined fiber optic experience, the past 12 years in upstream oil and gas sensor system design and commercialization, including the successful introduction of downhole monitoring products in the difficult thermal recovery sector. Petrospec is particularly pleased to have the QOREX founders, together with their entire technical and operations team in Connecticut join our organization. QOREX engineering and factory operations are housed in a modern, purpose-built facility with dedicated system integration and calibration laboratories. QOREX will operate as a wholly-owned subsidiary of Petrospec and continue operations in Connecticut, reporting into the Petrospec head office in Edmonton, Alberta.

In early 2011 Petrospec received investment capital from Fulcrum Capital Partners Inc. (formerly HSBC Capital (Canada) Inc.) to facilitate a Management Buy-Out and to fund business expansion and growth. The addition of QOREX is consistent with Petrospec’s business plan to be a leading oilfield technology and services provider, and is especially synergistic with Petrospec’s reservoir monitoring and production optimization product offerings.

This acquisition has brought together two industry leaders within the unconventional oil and gas market with complementary expertise and capabilities to deliver superior products and services. Together with the strong backing from Fulcrum Capital Partners Inc., the
combined organization will continue to develop and introduce innovative optical products to this market.

For further information, please contact:

Gerald V. Chalifoux, P.Eng.
President & CEO
+1.780.468.6901