Parkland Energy Services Inc.
TSX VENTURE : PKE

November 03, 2009 14:58 ET

Parkland Energy Services Inc. Announces the Termination of the Offer to Merge the Business and Assets of Blue Horizon Energy Inc and Their Affiliated Companies

RED DEER, ALBERTA--(Marketwire - Nov. 3, 2009) - Parkland Energy Services Inc. (TSX VENTURE:PKE) ("the Company" / "Parkland") announced today that further to its previous announcement of August 25, 2009, the Company has terminated the Letter of Intent ("the LOI") to merge the business and assets of Blue Horizon Energy Inc. and their affiliated companies. The merger was to have closed October 31, 2009. As Parkland has been unable to complete its due diligence on Blue Horizon it has decided to terminate the merger.

Further to its news releases dated October 22, 2008 and April 17, 2009, the Letter of Intent to acquire Ace Oilfield Construction Ltd. has had its closing date extended to December 31, 2009. Parkland continues to work with LINK Resource Partners to raise the necessary capital to complete this acquisition. There is no assurance that Parkland will be able to acquire Ace Oilfield Construction Ltd.

Parkland continues to concentrate on industrial painting and coating, as well as, developing the manufacturing side of its business. At present demand for both of the companies products/services has decreased due to the slowdown in the oil patch. The addition of Ace Oilfield Construction Ltd. will provide Parkland with another revenue stream within the oil patch service sector.

Parkland is a company based in Red Deer, Alberta that specializes in the manufacturing of separator packages, metering skids, production tanks, and pressure vessels, and the provision of sandblasting, painting, coating, welding and fabrication services, The Common shares are listed on the TSX Venture Exchange and trade under the symbol "PKE".

As a result of the termination of the LOI, the Common Shares of the Company are expected to resume trading on November 5, 2009.

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of hydrocarbon reserves and resources, the realization of reserve and resource estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of drilling and development operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of hydrocarbon resources; production or recovery rates; accidents, Labour disputes and other risks of the oil and gas industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward looking statements.

TSX Venture Exchange nor its Regulation Service 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

  • Parkland Energy Services Inc.
    Allan Slobodian
    CFO
    (403) 346-8119
    allan.slobodian@parklandenergy.com
    or
    Parkland Energy Services Inc.
    Bay B, 310, 28042 Hwy 11
    Burnt Lake Business Park
    Red Deer County, AB., T4S 2L4