Gen III Oil Corp. on September 14, 2017 announced the signing of a Purchase and Sale Agreement with Elbow River Marketing Ltd., a wholly owned subsidiary of Parkland Fuel Corporation, for the majority of Gen III’s finished products from its first re-refinery being constructed in Bowden, Alberta, 100 km north of Calgary.

In June of this year, Gen III Oil announced the signing of a Letter of Intent with Elbow River Marketing Ltd., for the five-year off-take marketing agreement for Gen III's Group III and Group II+ base oils from its Bowden re-refinery.

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 seven hundred and sixty million dollars ($760 million). In March, the Company previously reported estimated annual recurring revenue of $159MM, with EBITDA in excess of $100MM. *EBITDA is a non-GAAP measure. Revised first year projected sales, based on continually rising commodity pricing, are now $168MM.

Gen III is developing its first full-scale facility on an existing refinery site to make use of infrastructure already in place located in Parkland Fuel’s Bowden, Alberta, Canada, distribution and storage facility. The site will process 2,800 barrels per day of used motor oil into a range of base stocks and related petroleum products. Gen III is moving forward with the engineering phase and is projecting the Bowden Facility will be operational and running at full capacity Jan 1, 2019.

Gen III CEO Greg Clarkes reiterated “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”.

Elbow River acts as an intermediary in a variety of fuels markets across all of North America, bringing buyers and sellers together, as well as providing logistical services to facilitate delivery of a variety of energy products from the buyer to the seller. Elbow River is a wholly owned subsidiary of PFC, an approximately C$3 billion public corporation.