Central Alberta Well Services Corp.
TSX VENTURE : CWC.A

Central Alberta Well Services Corp.

January 04, 2008 12:03 ET

Central Alberta Well Services Announces Acquisition of Service Rig Division of Wellco Energy Services

CALGARY, ALBERTA--(Marketwire - Jan. 4, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Central Alberta Well Services Corp. ("CWC" or the "Company") (TSX VENTURE:CWC.A) is pleased to announce that it has executed a formal Asset Purchase Agreement with Wellco Energy Services Partnership ("Wellco"), whereby CWC has agreed to acquire all of the assets and business of Wellco's Service Rig Division located in Brooks, Alberta. The total purchase consideration to be paid by CWC to Wellco for the assets and business is a cash payment of $11.31 million. The transaction is subject to the final approval of the TSX Venture Exchange and the parties contemplate that closing will occur on Monday, January 7, 2008.

The acquisition will add nine 1500 meter service rigs and related equipment to CWC's current fleet of 25 service rigs. CWC is also expected to take delivery of four additional service rigs currently under construction, bringing CWC's total operating service rig fleet to 38 units by the end of the first quarter of 2008. In addition, the acquisition will enhance CWC's geographical presence in southern Alberta with the newly acquired operating facility in Brooks, Alberta.

CWC is also pleased to announce that Alexander D. Greene has joined its Board of Directors. Mr. Greene brings to the Board more than 25 years of experience in corporate finance as well as financial and corporate restructuring. Mr. Greene is currently a managing partner of Tricap Partners Ltd., established by Brookfield Asset Management to provide a source of patient, long-term capital and strategic assistance to mid-market companies based in North America. Mr. Greene has a BBA in finance from George Washington University and resides in Westchester, New York. He is also a member of the Board of Directors of the Tourette Syndrome Association.

About Central Alberta Well Services

Central Alberta Well Services is headquartered in Red Deer, Alberta, with additional operating centres in eastern and northern Alberta and a business office in Calgary. The Company provides oilfield services, including well servicing, coil tubing, snubbing, nitrogen, well testing and oilfield equipment rentals to oil and gas companies operating in the Western Canadian Sedimentary Basin.

READER ADVISORY

Certain statements contained in this press release, including statements which may contain such words as "could", "should", "believe", "expect", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking statements, including, but not limited to, statements as to: future capital expenditures, including the amount and nature thereof; business strategy; expansion and growth of the Company's business and operations; and other matters. Management has made certain assumptions and analyses which reflect their experiences and knowledge in the industry. These assumptions and analyses are believed to be accurate and truthful at the time but the company can not assure readers that actual results will be consistent with these forward-looking statements. However, whether actual results, performance, or achievements will conform to the Company's expectations and predictions is subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the Company's expectations. All forward-looking statements made in the press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected outcomes to, or effects on, the Company or its business operations. The Company does not intend, and does not assume any obligation to update these forward-looking statements. Any forward-looking statements made previously may be inaccurate now.

Class A Shares (Trading): 22,125,430

Class B Shares (Non-Trading): 6,153,531

The TSX Venture Exchange has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Central Alberta Well Services Corp.
    Darryl E. Wilson
    President & Chief Executive Officer
    (403) 341-3933
    Email: darrylwilson@cawsc.com
    or
    Central Alberta Well Services Corp.
    6763 - 76th Street
    Red Deer, Alberta T4P 3R7
    or
    Central Alberta Well Services Corp.
    Darcy A. Campbell, CMA
    Vice-President, Finance and Chief Financial Officer
    (403) 264-2177
    Email: darcycampbell@cawsc.com
    or
    Central Alberta Well Services Corp.
    2325, 330 - 5th Avenue SW
    Calgary, Alberta T2P 0L4