Cordy Oilfield Services Inc.
TSX VENTURE : CKK

Cordy Oilfield Services Inc.

October 01, 2009 18:31 ET

Cordy Oilfield Services Inc. Corporate Update: Proposed $4.8 Million Private Placement

Proposed Acquisition of Tawow Resources Inc.

CALGARY, ALBERTA--(Marketwire - Oct. 1, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Cordy Oilfield Services Inc. (the "Corporation" or "Cordy") (TSX VENTURE:CKK) announces its intention to complete a private placement of up to 30 million units at the price of $0.16 per unit for proceeds of up to $4,800,000. Each unit will consist of one common share and one common share purchase warrant. Each full warrant will entitle the holder to purchase one common share during the three year period following the completion of the private placement upon payment of the exercise price of $0.21. It is presently anticipated that, through his holding company Lyncorp International Ltd., David Mullen, Cordy's Chief Executive Officer and a director as well as other insiders of Cordy will purchase greater than 25% of the units available under the private placement. Cordy has received strong expressions of interest and anticipates that the private placement will be fully subscribed. Cordy may pay commissions or finders fees to registered dealers or others entitled to receive commissions under applicable law on the sale of the units, the payment of such being subject to regulatory approval. The proceeds of the private placement are intended to be used to fund acquisitions and for general working capital purposes. The private placement is expected to close on or before October 30, 2009 and is subject to customary conditions including, but not limited to, the approval of the TSX Venture Exchange.

Cordy also announces that it has entered into a letter of intent in respect of its acquisition of Tawow Resources Inc. ("Tawow"). Tawow is an oilfield service company headquartered on the Tsuu T'ina Nation that provides slashing and other services primarily to geophysical contractors. It is anticipated that Darryl Bouvier will remain as the principal of Tawow following the completion of the acquisition. Mr. Bouvier has significant experience and relationships with the First Nations of Northern Alberta.

Cordy Oilfield Services Inc. owns businesses in Alberta and British Columbia in the construction, environmental, manufacturing and pipeline sectors and is focused on implementing strategic and organic growth strategies.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements, including statements concerning the anticipated participation of insiders in the private placement, the anticipated closing date of the private placement, the anticipated use of proceeds and the potential acquisition of Tawow. Cordy believe the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. Closing of the private placement and/or the acquisition of Tawow could be delayed if Cordy cannot obtain necessary regulatory approvals within anticipated timelines and will not be completed unless certain conditions customary for transactions of this kind are satisfied. The forward-looking statements included in this press release are made as of the date of this press release and Cordy disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirement. This media release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there by any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

NEITHER THE 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

  • Cordy Oilfield Services Inc.
    David Mullen
    Chairman & CEO
    (403) 802-6005
    (403) 266-2087 (FAX)
    dmullen@cordy.ca
    or
    Cordy Oilfield Services Inc.
    David Orr
    Senior Vice President
    (403) 802-6008
    (403) 266-2087 (FAX)
    dorr@cordy.ca
    www.cordy.ca