BlackWatch Energy Services Corp.
TSX : BWT

BlackWatch Energy Services Corp.

June 30, 2009 08:30 ET

BlackWatch Energy Services Corp. Closes Equity Financing and Converts Subordinated Debt Into Common Shares

CALGARY, ALBERTA--(Marketwire - June 30, 2009) - BlackWatch Energy Services Corp. ("BlackWatch") (TSX:BWT) is pleased to announce that it has completed the previously announced sale of 64,299,319 common shares at $0.15, for total proceeds of approximately $9,644,898. BlackWatch intends to close the sale of the remaining 2,367,348 common shares on or about July 10, 2009, completing the $10 million financing announced on June 11, 2009. The proceeds of the offering will be applied to its senior debt. BlackWatch also completed the conversion of its existing subordinated debt balance of $24.2 million into 37.2 million common shares.

ABOUT BLACKWATCH ENERGY SERVICES CORP.

BlackWatch is a public energy services corporation operating in Western Canada and which trades on the Toronto Stock Exchange (TSX) under the symbol "BWT".

Note Regarding Forward Looking Statements

This news release contains forward-looking statements relating to the completion of the Recapitalization. These statements are based on certain factors and assumptions regarding use of proceeds from the financing and timing of completion of the second closing of the financing. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. By their nature, forward-looking statements involve numerous risk and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation, risks associated with the ongoing participation of BlackWatch's current lenders, the failure to replace BlackWatch's existing credit facility, delays resulting from or inability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive. Although BlackWatch believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not unduly rely on forward-looking statements. The forward-looking statements contained in this news release are made as the date of this new release and BlackWatch does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Contact Information

  • BlackWatch Energy Services Corp.
    John R. King
    President and Chief Executive Officer
    (403) 225-3879
    (403) 366-2066 (FAX)
    or
    BlackWatch Energy Services Corp.
    300, 855 - 8 Avenue SW
    Calgary, Alberta T2P 3P1