BlackWatch Energy Services Corp.
TSX : BWT

BlackWatch Energy Services Corp.

July 01, 2009 00:56 ET

BlackWatch Energy Services Corp. Announces Extension of Senior Credit Facility and Early Warning

CALGARY, ALBERTA--(Marketwire - July 1, 2009) - BlackWatch Energy Services Corp. ("BlackWatch") (TSX:BWT) is pleased to announce that Bank of Nova Scotia has agreed to extend the maturity of the senior credit facility to December 31, 2009. The amount available under the facility is $9 million, of which BlackWatch has currently drawn approximately $4.75 million, reflecting application of the proceeds of the first tranche of the private placement offering of common shares that closed on June 29.

Early Warning Information

Pursuant to the private placement offering of common shares and conversion of subordinated debt on June 29:

1. M. Bruce Chernoff ("Chernoff"), 3900, 350 - 7 Avenue SW, Calgary AB T2P 3N9, through entities substantially owned by him ("Chernoffcos"), has acquired control of 30,645,417 common shares of BlackWatch, representing approximately 22% of the total issued and outstanding common shares of BlackWatch following completion of the financing and conversion of the subordinated debt facility. Chernoff, directly or indirectly through entities owned or controlled by him, has ownership or control of 40,181,301 common shares of BlackWatch. Such BlackWatch common shares represent, in aggregate, 29% of the outstanding common shares of the Corporation. The common shares were issued by BlackWatch on June 29, 2009 from treasury by way of a private placement and on conversion of the existing subordinated debt facility. The shares issued by way of private placement were issued at $0.15 per share and the shares issued on the conversion of the existing subordinated debt were issued at $0.65 per share. Section 2.3 of National Instrument 45-106 - Prospectus and Registration Exemptions was relied upon with respect to the issuance of the common shares to Chernoffcos. A copy of the early warning report for Chernoff will be filed on SEDAR and may also be obtained by contacting the individual listed below.

2. Hank Swartout ("Swartout"), 1003, 200 La Caille Place S.W., Calgary AB T2P 5E2, a director of BlackWatch, directly and through an entity owned by him, has acquired control of 20,000,000 common shares of BlackWatch, representing approximately 14% of the total issued and outstanding common shares of BlackWatch following completion of the financing and conversion of the subordinated debt facility. Swartout, directly or indirectly through entities owned or controlled by him, has ownership or control of 20,000,000 common shares of BlackWatch. Such BlackWatch common shares represent, in aggregate, 14% of the outstanding common shares of the Corporation. The common shares were issued by BlackWatch on June 29, 2009 from treasury by way of a private placement at a price of $0.15 per share. Section 2.3 of National Instrument 45-106 - Prospectus and Registration Exemptions was relied upon with respect to the issuance of the common shares to Swartout. A copy of the early warning report for Swartout will be filed on SEDAR and may be obtained may also be obtained by contacting the individual listed below.

3. John King ("King"), Suite 300, 855 - 8th Avenue SW, Calgary AB T2P 3P1, President & CEO of BlackWatch, has acquired control of 20,000,000 common shares of BlackWatch, representing approximately 14% of the total issued and outstanding common shares of BlackWatch following completion of the financing and conversion of the subordinated debt facility. King has ownership or control of 20,000,000 common shares of BlackWatch. Such BlackWatch common shares represent, in aggregate, 14% of the outstanding common shares of the Corporation. The common shares were issued by BlackWatch on June 29, 2009 from treasury by way of a private placement at a price of $0.15 per share. Section 2.3 of National Instrument 45-106 - Prospectus and Registration Exemptions was relied upon with respect to the issuance of the common shares to King. A copy of the early warning report for King will be filed on SEDAR may also be obtained by contacting King at the contact information listed below.

ABOUT BLACKWATCH ENERGY SERVICES CORP.

BlackWatch is a public energy services corporation operating in Western Canada and which trades on the Toronto Stock Exchange (TSX) under the symbol "BWT".

Contact Information

  • BlackWatch Energy Services Corp.
    John R. King
    President and Chief Executive Officer
    (403) 225-3879
    (403) 366-2066 (FAX)
    or
    BlackWatch Energy Services Corp.
    300, 855 - 8 Avenue SW
    Calgary, Alberta T2P 3P1