Pure Energy Services Ltd.
TSX : PSV

Pure Energy Services Ltd.

April 07, 2010 17:30 ET

Pure Energy Announces Acquisition of USA Wireline Assets and Disposition of Performance Drilling Assets

CALGARY, ALBERTA--(Marketwire - April 7, 2010) - Pure Energy Services Ltd. ("Pure") (TSX:PSV) announces that it has reached an agreement to purchase the USA cased-hole electric wireline assets and operations of Cathedral Energy Services Ltd. ("Cathedral") in exchange for Pure's performance drilling assets and operations (conducted through Pure's "Motorworks Drilling Solutions" division) and a cash payment of approximately CDN $2.1 million. This transaction is expected to close on April 20, 2010 and is subject to customary closing conditions.

The Cathedral assets consist of 10 cased-hole electric wireline units, four crane trucks and various logging tools and currently operate in Dickinson, North Dakota, Casper, Wyoming and McAlester, Oklahoma. After completion of the acquisition, Pure's United States' cased-hole electric wireline fleet will increase from 8 to 18 units operating in Colorado, Wyoming, North Dakota and Oklahoma. The increased fleet provides critical mass In Pure's USA operating areas, particularly in North Dakota where Pure has recently established wireline operations.

Pure further announces that it has entered into a letter of intent for the sale of two properties owned by Pure in Grande Prairie, Alberta for net proceeds of approximately $5.1 million. This transaction is subject to the execution and delivery of a definitive purchase and sale agreement for the properties and will be subject to customary closing conditions. The purchase and sale of the Grande Prairie properties is expected to close on or before June 1, 2010.

The proceeds from the sale of these properties will be used to finance the $2.1 million cash payment for the Cathedral acquisition as well as an increase in Pure's 2010 capital expenditure budget. The increased capex budget (from $6 million to approximately $8.5 million excluding the Cathedral purchase) is planned for high pressure well testing and wireline equipment in Canada and the USA as well as specialized logging tools. There has been high demand by customers for this type of equipment, especially in some of the emerging resource plays on both Canada and the USA.

Pure is an oilfield services company that provides completion and drilling related services to oil and gas exploration and development entities in the Western Canadian Sedimentary Basin and, through its wholly-owned subsidiary, Pure Energy Services (USA), Inc., in the Rocky Mountain region, North Dakota and the Appalachian Basin of the United States.

Certain statements in this press release may constitute "forward-looking information" which involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Pure or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this press release, such information uses such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate" and other similar terminology. This information reflects Pure's current expectations regarding future events and operating performance and speaks only as of the date of this press release. Forward-looking information involves significant risks and uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information. Although the forward-looking information contained in this press release is based upon what management of Pure believes are reasonable assumptions, Pure cannot assure investors that actual results will be consistent with this forward-looking information. This forward-looking information is provided as of the date of this press release, and, subject to applicable securities laws, Pure assumes no obligation to update or revise such information to reflect new events or circumstances. In particular and without limitation, this press release contains forward looking statements and information pertaining to the following: completion of a definitive purchase agreement for the sale of the Grande Prairie properties, and the completion of the acquisition of the Cathedral transaction and the sale of the Grande Prairie properties, business strategy, future development and growth opportunities, capital expenditures, prospects and asset base of Pure and deployment of equipment and equipment utilization.

This news release also contains forward-looking statements and information concerning the anticipated completion of the both the Cathedral transaction and the sale of the Grande Prairie properties. Pure has provided these anticipated times in reliance on certain assumptions that it believes are reasonable at this time, including assumptions as to the timing of receipt of the necessary approvals and the time necessary to satisfy the conditions to the closing of the transactions. These dates may change for a number of reasons, including the inability to (complete a definitive purchase and sale agreement for the sale of the Grande Prairie properties or to) secure necessary approvals in the time assumed or the need for additional time to satisfy the conditions to the completion of the transactions. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release concerning these times. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Pure's operations or financial results are included in Pure's annual information forms and management's discussion and analysis which may be accessed through Pure's corporate profile on the SEDAR website (www.sedar.com).

Contact Information

  • Pure Energy Services Ltd.
    Brad Gabel
    President, Canadian Completion Services
    (403) 262-4000
    (403) 262-4005 (FAX)
    bgabel@pure-energy.ca
    or
    Pure Energy Services Ltd.
    Rutger Niers
    President, Drilling and US Completion Services
    (403) 262-4000
    (403) 262-4005 (FAX)
    rniers@pure-energy.ca
    or
    Pure Energy Services Ltd.
    10th Floor, 333 - 11th Avenue S.W.
    Calgary, Alberta T2R 1L9