Central Alberta Well Services Corp.
TSX VENTURE : CWC

Central Alberta Well Services Corp.

December 03, 2009 14:11 ET

Central Alberta Well Services Closes $33 Million Rights Offering

CALGARY, ALBERTA--(Marketwire - Dec. 3, 2009) -

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Central Alberta Well Services Corp. ("CWC" or the "Company") (TSX VENTURE:CWC) is pleased to announce the closing of its previously announced $33 million Prospectus Rights Offering (the "Offering"). Under the fully subscribed Offering, the Company raised total gross proceeds of approximately $33 million and issued 131,996,703 Common Shares of the Company to shareholders who exercised their Rights. Under the Offering, each eligible shareholder of the Company received one right ("Right") for each Common Share held and each Right was exercisable for 4.855 Common Shares at a price of $0.25 per Common Share.

Following the completion of the Offering, BSS II Limited, the General Partner of Brookfield Special Situations II L.P. (formerly Tricap Partners II L.P.), now owns approximately 84% of the issued and outstanding Common Shares of the Company. 

The net proceeds from the Offering, after deducting the expenses of the Offering were used to reduce indebtedness under the Company's credit facilities with Brookfield Bridge Lending Fund Inc., the Alberta Treasury Branches and for general corporate purposes. 

About Central Alberta Well Services

Central Alberta Well Services has its corporate office in Calgary, Alberta, with its operational head office in Red Deer, Alberta, and additional operating centres in Provost, Brooks and Grande Prairie, Alberta and a recently opened satellite facility in Weyburn, Saskatchewan. 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.

Common Shares: 159,184,064

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Central Alberta Well Services Corp.
    Darryl E. Wilson
    President & Chief Executive Officer
    (403) 264-2177
    darrylwilson@cawsc.com
    or
    Central Alberta Well Services Corp.
    Darcy A. Campbell, CMA
    Vice-President, Finance and Chief Financial Officer
    (403) 264-2177
    darcycampbell@cawsc.com
    or
    Central Alberta Well Services Corp.
    755, 255 - 5 Avenue SW
    Calgary, Alberta T2P 3G6