Parkland Energy Services Inc.

August 04, 2009 11:55 ET

Parkland Energy Services Inc.: Press Release

RED DEER, ALBERTA--(Marketwire - Aug. 4, 2009) - Parkland Energy Services Inc. (TSX VENTURE:PKE)

Cease Trade Orders Revoked

The cease trade orders issued by the Alberta and British Columbia Securities Commissions were revoked on July 23 and July 24, 2009 respectively. The cease trade orders were imposed due to the company having failed to file its continuous disclosure documents for the year ended December 31, 2008 and interim period March 31, 2009 on a timely basis. The TSXV is currently undertaking a review and reinstatement, after which it is anticipated the company's shares will resume trading.

Premises lease signed (further to press release of April 17, 2009)

On May 1, 2009 Parkland entered into a lease agreement with Hillman Holdings Inc. (a company controlled by Gordon Hillman, the acting President and CEO, and a director and shareholder) to rent a portion of the space previously leased by C and T Equipment Sales & Rentals Ltd. The lease of 12,960 square feet of manufacturing and office space is for a period of 7 years with an option to renew for a further 5 years. The lease was approved by Parkland's two outside directors, with Mr. Hillman abstaining from voting.

Current Operations (further to press release of April 17, 2009)

Parkland continues to do industrial painting and coating. With the addition of a new shop foreman in April of 2009, Parkland has revived the manufacturing operation of its discontinued subsidiary C & T Equipment Sales and Rentals Ltd. The company is manufacturing vessels and packages, as it receives customer orders.

Proposed Acquisition of ACE Oilfield Construction Ltd. (further to press releases of October 22, 2008 and April 17, 2009)

The company continues to work with LINK Resource Partners to raise the funds to acquire ACE Oilfield Construction Ltd. The purchase price of $2.5 million with an effective date of April 1, 2009, and closing date of October 31, 2009 all remain the same. The Board of Directors continues to look at other alternatives as well, which include acquisitions, mergers, reverse take-overs or new financings.

Acquisition of Assets and Secured Debt from Hillman Holding Inc. and C and T Equipment Sales and Rentals Ltd. (further to press releases of February 27, 2009, March 19, 2009 and April 17, 2009).

On May 31, 2009 the landlord released the quit claim, for unpaid rents, and C & T transferred the following assets and liabilities to the parent company, Parkland, to continue operations:

Assets transferred
Inventory $ 428,724
Accounts receivable 148,671
Property, plant and equipment 503,688
$ 1,081,083

Liabilities transferred
Bank indebtedness - line of credit $ 171,725
Promissory notes 550,000
New promissory note (1) 249,456
Capital lease obligations 109,902
$ 1,081,083

(1) the new promissory note is to Hillman Holdings Inc., bears interest at
12% per annum and is due on demand.

All of the remaining terms and conditions on the liabilities transferred remain the same as they were under C & T and it is management's view that there is no impairment of the inventory or property, plant and equipment.

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".

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, CA
    Chief Financial Officer
    (403) 346-8119
    (403) 346-4605 (FAX)