CALGARY, ALBERTA--(Marketwired - May 9, 2014) - Calmena Energy Services Inc. (TSX:CEZ) ("Calmena") is pleased to announce that it has sold its Canadian based Drilling Technologies research and manufacturing division and certain related assets to FastCAP Systems Corporation ("FastCAP") for consideration comprised of US$1.0 million cash and the provision of US$1.2 million in kind, in the form of services and technology products provided to Calmena by FastCAP over the next four years.
The US$1.0 million cash proceeds from this transaction will be used to fund a reduction of amounts owing by Calmena under its credit facilities with its senior lender.
FastCAP, based in Boston, Massachusetts, is an energy technology company focused on developing and commercializing advanced ultracapacitor based power systems for a broad range of applications, including oil, gas and geothermal drilling related products.
"Calmena views this transaction as strategically beneficial to both parties, allowing Calmena access to advanced measurement-while-drilling technologies through a long term strategic arrangement with FastCAP. While we continue to deliver onshore directional field services, through our core business operations in the United States, we are excited about collaborating closely with FastCAP to develop and commercialize new and exciting directional drilling technologies. FastCAP's formidable engineering and design capabilities make this an ideal strategic partnership for Calmena's directional drilling business," noted John King, President and Chief Executive Officer of Calmena.
This transaction is being undertaken in conjunction with Calmena's previously announced process to explore strategic alternatives. This 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.
ABOUT CALMENA ENERGY SERVICES INC.
Calmena is a diversified energy services company that provides well construction services to its customers operating in the United States, Latin America as well as 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 timing for repayment of amounts owing under its Credit Facilities, the provision of services and technology products to Calmena by FastCAP, Calmena developing and commercializing new directional drilling technologies with FastCAP, 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, 2013 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.