Canadian Sub-Surface Energy Services Corp.
TSX : CSE

Canadian Sub-Surface Energy Services Corp.

May 31, 2006 20:40 ET

Canadian Sub-Surface Energy Services Corp. Announces the Closing of Sure Shot Perforators and VCEE Wireline

CALGARY, ALBERTA--(CCNMatthews - May 31, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Canadian Sub-Surface Energy Services Corp. ("CanSub" or the "Company") (TSX:CSE) is pleased to announce the closing of the previously announced acquisitions of the assets of Sure Shot Perforators Ltd. ("Sure Shot") and VCEE Wireline Services Ltd. ("VCEE"). Sure Shot and VCEE operate a total of 9 wireline trucks based in Estevan, Saskatchewan and Fairview, Alberta. These acquisitions, in conjunction with the closing of the acquisition of Colter Productions Services Inc. ("Colter") and Southern Wireline Services Ltd. ("Southern Wireline") announced earlier today, position CanSub to further expand its Wireline and Testing divisions in the Western Canadian Sedimentary Basin.

The aggregate purchase price of the four acquisitions is approximately $29.85 million. The purchase price was financed with approximately $16.30 million in cash and $13.55 million through the issuance of common shares of CanSub. Certain post closing purchase price adjustment provisions remain in place in respect of VCEE. In addition, certain closing trust conditions in respect of VCEE remain in place but are expected to be satisfied within 48 hours.

The closing Sure Shot and VCEE, together with the closing of Colter and Southern Wireline, successfully conclude the acquisitions announced on May 10, 2006.

CanSub is Calgary-based and provides cased-hole wireline, production testing, well optimization and swabbing services to junior, intermediate and senior oil and gas exploration and production companies, with operations focused in Western Canada. CanSub's available fleet, subsequent to the acquisitions, will include 32 wireline trucks, 4 swabbing units and 48 testing packages from 9 locations across the Western Canadian Sedimentary Basin.

Certain information set forth in this press release contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including the impact of general economic conditions, industry conditions, volatility of oil and gas prices, currency fluctuation, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, performance or achievement could differ 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 so, what benefits will be derived there from. 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 and CEO
    (403) 262-3247
    or
    Canadian Sub-Surface Energy Services Corp.
    Chris Martin
    V.P. Finance and CFO
    (403) 213-6794
    or
    Canadian Sub-Surface Energy Services Corp.
    600, 505 - 8th Avenue S.W.
    Calgary, Alberta T2P 1G2