Calmena Energy Services Inc.
TSX : CEZ

Calmena Energy Services Inc.

February 18, 2014 08:30 ET

Calmena Announces Borrowing Update

CALGARY, ALBERTA--(Marketwired - Feb. 18, 2014) -

Calmena Energy Services Inc. (TSX:CEZ) ("Calmena" or the "Company") announces an update on the status of its senior credit facilities ("Credit Facilities").

On January 16, 2014, Calmena's senior lender (the "Lender") requested payment of all amounts owing to it under the Credit Facilities by February 15, 2014. Payment of such amounts remains outstanding, however Calmena continues in discussions with the Lender respecting the Credit Facilities and the possibility of extending the deadline for payment. There can be no assurances that such agreement can be reached. To date, the Lender has not demanded repayment of the amounts owing under the Credit Facilities nor taken any steps to enforce its security under the Credit Facilities, however there can be no assurances that the Lender will not take such measures in the immediate future.

The Credit Facilities consist of a revolving demand operating facility with a maximum borrowing capacity of $10.0 million (subject to a borrowing restriction based on the carrying amount of Calmena's Canadian and US trade receivables), and a revolving extendible facility with a maximum borrowing capacity of $24.6 million. The total owing under the Credit Facilities is currently $28.5 million. Calmena also owes $16.2 million to secured lenders under facilities that are subordinated and postponed to the Lender.

ABOUT CALMENA ENERGY SERVICES INC.

Calmena is a diversified energy services company that provides well construction services to its customers operating in Canada, the United States, Latin America and the Middle East and North Africa. The common shares of Calmena trade on the Toronto Stock Exchange under the symbol "CEZ".

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements relating to Calmena's plans, strategies, objectives, expectations and intentions. Expressions such as "may", "anticipate", "expect", "believe", "intend", "will", and similar expressions and statements are intended to identify forward looking statements. Such statements represent Calmena's beliefs concerning, among other things, the deadline for payment by Calmena of amounts owing under its Credit Facilities being extended and that there can be no assurances that such deadline will be extended or that the Lender will not take steps to demand payment under the Credit Facilities or enforce its security thereunder in the immediate future, and other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions and actual events or results may differ materially. Although Calmena believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Calmena's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Calmena.

These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Calmena's control, including, but not limited to, the risks considered under "Risk Factors" in our annual information form for the year ended December 31, 2012 which is available on www.sedar.com.

Calmena's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur. Readers are cautioned that the foregoing lists of factors are not exhaustive.

These forward-looking statements are made as of the date of this news release and Calmena disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Contact Information

  • Calmena Energy Services Inc.
    John R. King
    President and Chief Executive Officer
    (403) 225-3879
    (403) 366-2066 (FAX)

    Calmena Energy Services Inc.
    Peter J. Balkwill
    Vice President Finance and Chief Financial Officer
    (403) 225-3879
    (403) 366-2066 (FAX)
    www.calmena.com