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

Central Alberta Well Services Corp.

October 01, 2007 16:44 ET

Central Alberta Well Services Announces Addition of New Service Rig

CALGARY, ALBERTA--(Marketwire - Oct. 1, 2007) -

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

Central Alberta Well Services Corp. (TSX VENTURE:CWC.A) ("CWC" or the "Company") is pleased to announce that it has taken possession of the first of eight new service rigs that are being manufactured for the Company in Calgary, Alberta. The new rig will be deployed from the Company's Red Deer operating facility to meet customer demand for work-over and completions of oil wells predominantly in the Central region of Alberta. The remainder of the service rigs being fabricated will be deployed from the Company's operating facilities in Red Deer, Provost and Grande Prairie in the fourth quarter to meet current customer demands and to expand the Company's operations in northern Alberta and the Peace River Arch. The final rig to be deployed is the first slant rig designed by the Company and will be stationed out of the Company's Provost operating centre. All eight rigs are expected to be deployed before the end of 2007 and fully operational in the first quarter of 2008.

Darryl Wilson, President and CEO, stated, "We are pleased to see that the new rigs are being delivered at an opportune time for the Company. Our 1,500 meter rigs have been very active throughout the second and third quarters of 2007. These rigs predominantly work for the Company's clients on oil production projects in Central and Eastern, Alberta. With oil prices at current levels, the utilization rates for service rigs are forecast to remain strong over the next six months. With the addition of our eight new service rigs, the Company will exit the year with a fleet of eighteen 1,500 meter rigs, bringing our total service rig fleet to twenty-nine units."

The Company also announces that it has received approval from the TSX Venture Exchange for the cancellation of all previously issued options in order to re-issue options to employees and management. Options are a key component of the Company's benefit and compensation program which is designed to attract and retain key employees. Prior to the cancellation and after the consolidation of the Company's shares, options issued by the Company had an average exercise price of $6.36 per option. The Company continues to believe that the current trading price of the Company's Class A Shares is understated and with this in mind and to create an alignment of interest between employees and shareholders, the new options being issued were priced at $2.40 per option, a 23% premium to the closing price of $1.95 the day prior to the issuance of the options. The Company issued 1,470,375 options of 2,267,193 available options at an exercise price of $2.40 to officers, senior management, employees and directors. The options have vesting provisions over three years and will expire five years from the date of issue.

The Company also announces that it has purchased 44,100 Class A Shares of the Company at an average price of $1.82 per share through the Company's previously announced normal course issuer bid program.

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): 22,671,930

Class B Shares (Non-Trading): 5,653,531

The TSXV 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