Cordy Oilfield Services Inc.
TSX VENTURE : CKK
August 04, 2006 12:04 ET
Cordy Announces Completion of Acquisition of Hartwell Oilfield Services
CALGARY, ALBERTA--(CCNMatthews - Aug. 4, 2006) - Cordy Oilfield Services Inc. (the "Corporation") (TSX VENTURE:CKK) is pleased to announce that it has completed its purchase of Hartwell Oilfield Services ("Hartwell").
Hartwell Oilfield Services, established in 1994, provides oilfield vacuum truck services to oil and natural gas producers in central Alberta. Hartwell operates out of Stettler, Alberta with 25 water and vacuum truck units and employs approximately 30 people. Bruce Reinhart and Doug Reinhart, the senior managers of Hartwell will continue in their respective management roles with Hartwell.
The purchase price for Hartwell was $9,374,775 made up of $4,218,650 in cash and $5,156,125 by way of the issuance of 982,119 Cordy Shares at the deemed price of $5.25 per share. The Corporation also granted to the vendors a right to acquire, for no further consideration, up to an additional 374,756 Cordy Shares based on a market price adjustment based upon trading prices for the 60 day period ending February 1, 2007. The Corporation also granted 500,000 options to purchase Cordy Shares with an exercise price of $3.80 to employees of Battle River.
Upon completion of the Transaction, there are approximately 77.7 million common shares ("Cordy Shares") of the Corporation issued and outstanding.
The Corporation's President and CEO Sid Dutchak describes the purchase of Hartwell as complementary to Cordy's previously acquired Stettler based Top-Notch Oilfield Services Ltd. "Cordy is not only adding a profitable well run company, but in addition, we will expand our business in the Stettler region and realize operational efficiencies in the process due to the fact that Top-Notch and Hartwell are both based in Stettler."
Sid Dutchak further provided the Corporations financial expectations in relation to the recently concluded purchases of Lamont Bit Services Ltd. and Battle River Oilfield Construction Ltd. (see press release of August 1, 2006) together with the Hartwell acquistion. "We expect Battle River, Hartwell, and Lamont to contribute in excess of $11,000,000 to Cordy's annualized EBITDA."
This press release may contain forward-looking statements that are subject to risk factors associated with the oil and gas business and the overall economy. The Corporation believes that the expectations reflected in this press release are reasonble, but results may be affected by a variety of variables.
The TSX Venture Exchange has in no way passed upon the merits of the Transactions and has neither approved nor disapproved of the contents of this press release. The Transactions are subject to approval by the Exchange.
The Corporation owns businesses in the oilfield services and construction sectors and is implementing a strategy of growth through acquisition.
The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of this release.