New West Energy Services Inc.

May 03, 2010 06:00 ET

New West Energy Services Inc. Announces Private Placement

CALGARY, ALBERTA--(Marketwire - May 3, 2010) -


New West Energy Services Inc. (TSX VENTURE:NWE) ("New West" or the "Company") announces it intends to conduct a private placement of up to 30,000,000 subscription receipts (the "Subscription Receipts") at a price of $0.05 per Subscription Receipt for gross proceeds of up to $1,500,000 (the "Offering"). The Subscription Receipts are being issued in connection with a proposed acquisition of by the Company of a drilling waste business, which includes specialized vacuum trucks for land spraying, by way of asset purchase, for a purchase price of approximately $1.1 million (the "Acquisition"). Each Subscription Receipt will be automatically exchanged for one common share of the Company ("Common Share") and one Common Share purchase warrant (a "Warrant") upon and subject to completion of the Acquisition. Each Warrant will entitle the holder thereof to purchase one Common Share at a price of $0.10 at any time for a period of 36 months from the date of issue, subject to early termination in the event the Common Shares subsequently trade on the facilities of the TSX Venture Exchange at prices above $0.25 per share for a period of 20 consecutive trading days.

The gross proceeds of the Offering will be placed in escrow and released to the seller only upon completion of the Acquisition. In the event the Acquisition is not completed by June 15, 2010, all subscription proceeds will be returned to subscribers together with any interest earned thereon.

About New West

New West operates in the oil field service industry in Canada. New West sells chemicals and provides engineering services to oil and gas exploration and production companies.

Forward Looking Statements — This news release contains certain forward-looking statements, which include assumptions with respect to raising funds and completion of a transaction. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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

Contact Information

  • New West Energy Services Inc.
    Richard J Collens
    Chief Financial Officer
    403.263.7558 (FAX)