Volatus Aerospace Corp. Continues to Expand Oil and Gas Right of Way Surveillance Business into U.S.
Volatus Aerospace Corp. (VLTTF) announced its subsidiary, Synergy Aviation, signed a master services agreement (MSA) with a major U.S. oil and gas company for bi-weekly aerial surveillance of pipeline right-of-way, effective August 1, 2024.
The contract is expected to generate $400K-$500K USD annually, with margins comparable to similar contracts. This expansion builds on Volatus' extensive experience in Canada, where they've conducted over one million kilometers of pipeline surveillance annually.
This agreement enhances Volatus' footprint in the U.S. oil and gas sector, following a similar announcement in September 2023.
- New MSA with a major U.S. oil and gas company.
- Expected annual revenue of $400K-$500K USD.
- Surveillance operations to start August 1, 2024.
- Company has over a decade of experience in pipeline surveillance.
- Completed trial phase successfully.
- Strategic expansion into established U.S. markets like Texas.
- The announcement did not specify the duration of the contract.
- Financial impacts on margins were described as similar, without detailed percentages.
- The trial phase is complete, but operational risks remain as full surveillance begins.
TORONTO, ON / ACCESSWIRE / June 10, 2024 / Volatus Aerospace Corp. (TSXV:VOL)(OTCQB:VLTTF) ("Volatus" or the "Company") announced today that its subsidiary, Synergy Aviation, signed a master services agreement (MSA) on May 7, 2024 with a leading oil and gas company in the U.S. to provide bi-weekly aerial surveillance of pipeline right of way starting in the northern states and ending in Texas. The trial was completed this month, and inspections are slated to begin August 1st. This is expected to yield
"We have over a decade of sector experience in Canada, having flown more than one million kilometers of pipeline right of way annually stretching from Kitimat, British Columbia to Ottawa, Ontario," said Glen Lynch, CEO of Volatus Aerospace. "Our continued expansion into the U.S. oil & gas pipeline surveillance market demonstrates our ability to scale and provide our customers with the data and actionable intelligence they need to maintain their assets. We are excited for this opportunity, especially in a market as established as Texas."
This news follows on a similar announcement on September 8, 2023, and further solidifies Volatus' presence in the U.S. oil & gas aerial intelligence market.
About Volatus Aerospace:
Volatus Aerospace Corp. is a leading international provider of aerial intelligence solutions, using drones and commercial aircraft. Volatus serves civil, public safety, and defense markets with imaging and inspection, security and surveillance, equipment sales and support, training, as well as R&D, design, and manufacturing. We are focused on introducing green and innovative drone solutions to supplement and replace traditional aircraft and helicopters for long-linear inspections such as pipeline, energy, rail, and cargo services. Volatus is committed to carbon neutrality; the fostering of a safe, equitable and inclusive workplace; and responsible governance.
Forward-Looking Information
This news release contains statements that constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. Often, but not always, forward-looking information and forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the foregoing) be taken, occur, be achieved, or come to pass. Forward-looking information includes information regarding: (i) the anticipated benefits of, and estimated revenue to be generated by, the master service agreement; (ii) the business plans and expectations of the Company; and (iii) expectations for other economic, business, and/or competitive factors. Forward-looking information is based on currently available competitive, financial, and economic data and operating plans, strategies, or beliefs of management as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to the Company, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs. Any and all forward-looking information contained in this news release is expressly qualified by this cautionary statement. Investors are cautioned that forward-looking information is not based on historical facts but instead reflects expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Forward-looking information and forward-looking statements reflect the Company's current beliefs and is based on information currently available to it and on assumptions it believes to be not unreasonable in light of all of the circumstances. In some instances, material factors or assumptions are discussed in this news release in connection with statements containing forward-looking information. Such material factors and assumptions include, but are not limited to: the anticipated benefits and revenues of the master service agreement to the Company; the commercialization of drone flights beyond visual line of sight and potential benefits to the Company; meeting the continued listing requirements of the TSXV; and including, but not limited to, those factors set forth in the Company's Annual Information Form under the section "Risk Factors". Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. The forward-looking information contained herein is made as of the date of this news release and, other than as required by law, the Company disclaims any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
TSXV: VOL
Contact Details:
Glen Lynch
Chief Executive Officer
Volatus Aerospace Corp.
glen.lynch@volatusaerospace.com
SOURCE: Volatus Aerospace Corp.
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