Canadian Sub-Surface Energy Services Corp.
TSX : CSE

Canadian Sub-Surface Energy Services Corp.

June 02, 2009 18:20 ET

Canadian Sub-Surface Energy Services Corp. Announces Dissolution of Partnership and Simplified Corporate Structure

CALGARY, ALBERTA--(Marketwire - June 2, 2009) - Canadian Sub-Surface Energy Services Corp. ("CanSub" or the "Company") (TSX:CSE) announced today that Canadian Sub-Surface Energy Services Partnership (the "Partnership"), in which the Company is the managing partner with a 99.99% partnership interest, has been dissolved (the "Dissolution") effective May 31, 2009. Substantially all of the Company's Canadian business operations were conducted through the Partnership prior to the Dissolution. As part of the Dissolution, the Partnership's assets and liabilities were transferred to the two partners, CanSub and 789047 Alberta Ltd (which holds the remaining 0.01% partnership interest). On June 1, 2009, 789047 Alberta Ltd. was amalgamated with CanSub.

Subsequent to this series of transactions, all of the Company's Canadian operations will be conducted through one entity, CanSub, which simplifies the Company's corporate structure and is expected to reduce administrative costs. The Company's United States operations will continue to be conducted through its wholly-owned subsidiary, United Sub-Surface Energy Services Corp.

CanSub is a Calgary-based oilfield services company operating from field locations in the Western Canadian Sedimentary Basin and in North Dakota, U.S.A. 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. Accordingly, readers should not place undue reliance upon any of the forward-looking information set out in this news release. All of the forward-looking statements in this news release are expressly qualified in their entirety by this cautionary statement.

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