Calmena Energy Services Inc.
TSX : CEZ

Calmena Energy Services Inc.

October 20, 2014 08:30 ET

Calmena Announces Divestiture of Brazil Operations

CALGARY, ALBERTA--(Marketwired - Oct. 20, 2014) - Calmena Energy Services Inc (TSX:CEZ) ("Calmena" or the "Company") is pleased to announce that it has completed the sale of its Brazil operations, including all of its assets and its wholly owned subsidiary located in Brazil to a private Canadian company for a purchase price of $7.4 million. The sale price is comprised of the settlement of the entire balance owing under Calmena's US dollar term loan of $7.9 million net of cash included in the sale of $0.5 million.

Immediately following this transaction, Calmena borrowings and debt total $27.3 million, comprised of $17.4 million owing on its senior credit facility and $9.9 million owing on its related party credit facility.

The divestiture of the Brazil operations has been undertaken in conjunction with Calmena's previously announced process to explore strategic alternatives. The strategic alternatives process is ongoing and it remains Calmena's intention not to disclose developments with respect to the process unless and until the Board of Directors has approved a specific transaction or otherwise determines that disclosure is necessary or appropriate.

Peters and Co. Limited has been engaged to act as financial advisor in connection with the process.

ABOUT CALMENA ENERGY SERVICES INC.

Calmena provides contract drilling and directional services to its customers operating in the United States, Mexico and Libya. The common shares of Calmena trade on the Toronto Stock Exchange (TSX) under the symbol "CEZ".

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

Contact Information

  • Calmena Energy Services Inc.
    Hank B. Swartout
    Chairman
    (403) 225-3879

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