Pure Energy Services Ltd.
TSX : PSV

Pure Energy Services Ltd.

December 27, 2007 17:00 ET

Pure Energy Services Ltd. Announces Closing of Sale of Legacy Resources Company LLC

CALGARY, ALBERTA--(Marketwire - Dec. 27, 2007) - Pure Energy Services Ltd. ("Pure Energy") (TSX:PSV) announced today that the previously disclosed acquisition (the "Acquisition Transaction") by a third party purchaser (the "Purchaser") of all of the equity interests of Legacy Resources Company LLC ("Legacy") was completed on December 26, 2007. Legacy is the main supplier of 20/40 proppant ("Fracturing Sand") for the fracturing operations of Pure Energy's wholly-owned subsidiary, Pure Energy Services (USA), Inc. ("Pure USA").

On the completion of the Acquisition Transaction, Pure USA entered into a revised sand supply agreement with Legacy on terms consistent with the previously disclosed letter of understanding entered into between Pure USA and the Purchaser. Pure USA has received the payment of $4,937,000 in satisfaction of the loan owing by Legacy to Pure USA and as reimbursement of certain expenses incurred by Pure USA. This payment represents a small discount to the aggregate of the principal amount of the outstanding loan owing by Legacy and the reimbursable expenses incurred by Pure USA.

Pure Energy has been advised by the Purchaser that the reconstruction of Legacy's processing facilities will be commenced immediately and that the Purchaser anticipates that Legacy's processing facilities will resume full operations in the 2008 second quarter. Pure Energy has also been advised that certain equipment required for the reconstruction has already been ordered by the Purchaser in order to ensure that such equipment is available when needed in the reconstruction process.

Pure USA has been receiving quantities of Fracturing Sand from Legacy and other suppliers and expects that it will continue to receive deliveries of additional volumes of Fracturing Sand from Legacy and the other suppliers until Legacy recommences full operations. Pure USA has made arrangements to store all Fracturing Sand in the rail cars leased by Pure USA on its property in Colorado.

Management is confident that, given the Fracturing Sand delivered to date and the expected deliveries of Fracturing Sand, Pure USA will have sufficient volumes of Fracturing Sand to meet its contractual obligations for the provision of fracturing services in 2008.

Pure Energy currently provides logging and perforating, production testing, multiline, drilling, drilling rental and pressure transient analysis services to customers in the WCSB, and also provides production testing, logging and perforating, and fracturing services to customers in the Rocky Mountain region.

Certain statements in this press release, including expectations regarding the actions of the New Manager and design changes to the Facility, 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 Energy, the Facility, 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 Energy'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, including, but not limited to, the factors discussed below. Although the forward-looking information contained in this press release is based upon what management of Pure Energy believes are reasonable assumptions, Pure Energy 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 Energy assumes no obligation to update or revise such information to reflect new events or circumstances.

Contact Information

  • Pure Energy Services Ltd.
    Kevin Delaney
    President and CEO
    (403) 262-4000
    Email: kdelaney@pure-energy.ca
    or
    Pure Energy Services Ltd.
    Michael Baldwin
    Chief Financial Officer
    (403) 262-4000
    Email: mbaldwin@pure-energy.ca
    or
    Pure Energy Services Ltd.
    #300, 1010 - 1st Street S.W.
    Calgary, Alberta T2R 1K4
    (403) 262-4000
    (403) 262-4005 (FAX)
    Website: www.pure-energy.ca