Canadian Sub-Surface Energy Services Corp.
TSX : CSE

Canadian Sub-Surface Energy Services Corp.

May 02, 2008 17:00 ET

Canadian Sub-Surface Energy Services Closes Wireline Assets Acquisition and Private Placement Financing

CALGARY, ALBERTA--(Marketwire - May 2, 2008) - Canadian Sub-Surface Energy Services Corp. ("CanSub" or the "Company") (TSX:CSE) announced today that the Company has closed the previously reported acquisition of wireline assets from Peak Energy Services Trust for total consideration of $6.5 million. The asset package, which includes five electric line wireline units, will enable the Company to better serve its clients in core areas of western Canada where increased activity levels in the current and upcoming years are anticipated.

The Company also announced today that it has closed the previously reported, non-brokered private placement financing, which raised gross proceeds of $3.85 million. These proceeds will be used to finance a portion of the $6.5 million asset acquisition. The financing, which was taken up by CanSub employees, involved the issuance of 2.2 million Class A shares at a price of $1.75 per share.

CanSub is a Calgary-based oilfield services company operating from field locations throughout the Western Canadian Sedimentary Basin. The Company provides cased-hole wireline, production testing, well optimization and swabbing services to junior, intermediate and senior oil and gas exploration and production companies.

Certain statements in this news release, including (i) statements that may contain words such as "anticipate", "could", "expect", "seek", "may" "intend", "will", "believe", "should", "project", "forecast", "plan" and similar expressions, including the negatives thereof, (ii) statements that are based on current expectations and estimates about the markets in which the Company operates and (iii) statements of belief, intentions and expectations about developments, results and events that will or may occur in the future, constitute "forward-looking statements" and are based on certain assumptions and analysis made by the Company. Forward-looking statements in this press release include, but are not limited to, statements with respect to future capital expenditures, including the amount, nature and timing thereof; oil and natural gas prices and demand; other development trends within the oil and natural gas industry; business strategy; expansion and growth of the Corporation's business and operations and other such matters. Such forward-looking statements are subject to important risks and uncertainties, which are difficult to predict and that may affect the Company's operations, including but not limited to the impact of general economic conditions in Canada and the United States; industry conditions, including the adoption of new environmental, safety and other laws and regulations and changes in how they are interpreted and enforced; volatility of oil and natural gas prices; oil and natural gas product supply and demand and related demand for oilfield services; risks inherent in the Company's ability to generate sufficient cash flow from operations to meet its current and future obligations; increased competition; the lack of availability of qualified personnel or labor unrest; fluctuation in foreign exchange or interest rates; stock market volatility; opportunities available to or pursued by the Company and other factors, many of which are beyond the control of the Company. The Company's actual results, performance or achievements 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, or if any of them do transpire or occur, what benefits the Company will derive therefrom. Subject to applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Canadian Sub-Surface Energy Services Corp.
    Brad Gabel
    President & CEO
    (403) 262-3247
    Email: bgabel@cansub.com
    or
    Canadian Sub-Surface Energy Services Corp.
    Chris Martin
    Vice President, Finance & CFO
    (403) 262-3247
    Email: cmartin@cansub.com