Parkland Energy Services Inc.
TSX VENTURE : PKE

May 03, 2010 15:54 ET

Parkland Energy Services Inc.: News Release

RED DEER, ALBERTA--(Marketwire - May 3, 2010) - Further to press releases of October 22, 2008, April 17, 2009, November 30, 2009 and March 15, 2010, Parkland Energy Services Inc. (TSX VENTURE:PKE) ("Parkland" or the "Corporation") is pleased to announce that a binding agreement has been signed to close acquisition of Ace Oilfield Construction Ltd. ("ACE"). Parkland has acquired all of the issued and outstanding shares of ACE, a private Alberta company from Sandra Woitas and Jane Wyatt for $2,500,000 which was paid as to $1,500,000 by the issuance of 6,521,739 common shares of Parkland (4,565,217 to Sandra Woitas) at $0.23 per share with the balance paid by promissory note payable on conclusion of Parkland's previously announced financing of 13% and 15% secured notes and/or debentures. Final terms of the ACE acquisition are set out in a Share Purchase Agreement dated April 29, 2010. ACE is an oilfield construction company based in Sylvan Lake, Alberta. 

On April 30, 2010 the Corporation also issued debentures totalling $1,400,000 US together with 621,524 bonus shares at a deemed value of $0.23, representing a partial closing of its previously announced debt financing referred to above. These debentures were issued to related parties to Parkland, including Gordon Hillman the President of Parkland and Hillman Holdings Inc., a company controlled by Gordon Hillman, in consideration for indebtedness owing to each of them by Parkland or its subsidiaries. Following the transaction, Mr. Gordon Hillman, Acting President and CEO of Parkland will own or control a 37.61% interest in Parkland, compared to 51.47% prior to the transactions.

Additionally as a result of the issuance of shares for the ACE acquisition and the conversion of indebtedness to debentures, Sandra Woitas and her family will hold 22.22% of the issued and outstanding share capital of Parkland. The shares for the ACE acquisition were issued pursuant to the exemption contained in section 2.5 of National Instrument 45-106. Sandra Woitas has been a business associate of directors of Parkland for approximately 2.5 years. Sandra Woitas has no intention at this time to acquire additional shares of Parkland.

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".

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation. 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.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Parkland Energy Services Inc.
    Gordon Hillman
    Acting President & CEO
    (403) 346-8119
    or
    Parkland Energy Services Inc.
    Allan Slobodian
    CFO
    (403) 346-8119