Cordy Oilfield Services Inc.
TSX VENTURE : CKK

Cordy Oilfield Services Inc.

May 30, 2006 16:54 ET

Cordy Releases First Quarter 2006 Results

CALGARY, ALBERTA--(CCNMatthews - May 30, 2006) - We are pleased to announce the consolidated operating and financial performance of Cordy Oilfield Services Inc. ("Cordy") (TSX VENTURE:CKK) for the interim three month period ended March 31, 2006.

On January 31, 2006, Cordy acquired four growth oriented companies operating in the areas of oilfield services and construction, and environmental services, namely Calgary Septic Company Ltd. ("Calgary Septic"), Mesken Contracting Limited. ('Mesken"), NWP Construction Ltd. ("NWP") and Coverall Pipeline Construction Ltd. ("Coverall"). Through these acquisitions Cordy completed its transformation from a technology company to an oilfield services and construction company. The relevance of year to year comparisons of the financial results of Cordy is minimal given that Cordy operated as a technology company with minimal operations during the first quarter of 2005.

Operating results of Cordy for the interim period ended March 31, 2006 include the results of operations of Calgary Septic, Mesken, NWP and Coverall for the two month period commencing on the completion of the acquisitions on January 31, 2006 and ending on March 31, 2006.

Consolidated revenues of Cordy for the first quarter were $9.2 million compared to $0.1 million for the same period in 2005. Cordy generated $0.6 million in net income in the first quarter of 2006 as compared to a loss for the same period in 2005 of $0.1 million resulting in diluted earnings per share of $0.01 for the first quarter of 2006 as compared to a loss per share for the same period in 2005 of ($0.01).

In April 2006, Cordy acquired Nohels Group Inc. and Top-Notch Oilfield Services Inc. With the inclusion of the results from these most recent acquisitions it is expected that the future consolidated operating and financial results of Cordy will vary considerably from the results for the period ended March 31, 2006.

At present, the outlook for activity in the Western Canadian energy industry for 2006 remains positive. Oil and gas prices are expected to remain relatively constant which is expected to result in strong demand for the oilfield and construction services offered by Cordy. Cordy continues to expand its business operations both through internal growth and through the acquisition of additional specialized, well operated, growth oriented companies operating in the oilfield services and construction industry.

The completion of the acquisition of each of Nohels Group Inc. and Top-Notch Oilfield Services Inc. in April 2006, the proposed acquisition of Sphere Drilling Fluids Ltd. which is anticipated to be completed on or about May 31, 2006 and the April 2006 private placement for net proceeds of $54.6 million evidences Cordy's continued commitment to expand its business operations. Management believes that Cordy is in an excellent position to capitalize on the strength of the oilfield services and construction industry.

Cordy is listed on the TSX-V under the symbol "CKK."

This press release may contain forward-looking statements that are subject to risk factors and associated with the oil and gas business and the overall economy. Cordy believes that the expectations reflected in this press release are reasonable, but results may be affected by a variety of variables.

Additional information on Cordy is available on our website www.cordy.ca or on SEDAR at www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the accuracy or adequacy of this release.

Contact Information

  • Cordy Oilfield Services Inc.
    Sid Dutchak
    President & CEO
    (403) 266-2067
    (866) 854-8075 (FAX)
    Email: sdutchak@cordy.ca
    or
    For investor relations information:
    Cordy Oilfield Services Inc.
    David Orr
    Vice President - Corporate Development
    Email: dorr@cordy.ca
    Website: www.cordy.ca