Canadian Sub-Surface Energy Services Corp.
TSX : CSE

Canadian Sub-Surface Energy Services Corp.

September 12, 2008 14:23 ET

Canadian Sub-Surface Energy Services Corp Announces Normal Course Issuer Bid and Opening of New Operating Locations

CALGARY, ALBERTA--(Marketwire - Sept. 12, 2008) -

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) announced today that it has received approval from the Toronto Stock Exchange (the "TSX") stating its intention to conduct a normal course issuer bid (the "Bid"). The Company intends to purchase up to 500,000 Class "A" common shares under the Bid which represents 1.9% of the 26,123,742 currently issued and outstanding Class "A" common shares of the Company. Pursuant to TSX policies, daily purchases made by the Company may not exceed 10,886 Class "A" common shares, representing 25% of the six month average daily trading volume of 43,546 Class "A" common shares on the TSX. The Company intends to cancel any common shares acquired under the Bid. The Bid will commence on September 17, 2008 and will terminate on the earlier of September 16, 2009 or the date upon which the Company acquires the maximum number of common shares to be purchased pursuant to the Bid.

Purchase and payment for the common shares acquired by the Company will be made in accordance with the By-laws and Rules of the TSX. The price that the Company will pay for any common shares which it acquires will be the market price at the time of acquisition. The Company will not purchase common shares other than by means of open market transactions while the Bid is outstanding.

The Board of Directors of the Company believe that the Company's common shares have been trading in a price range which does not adequately reflect their value in relation to the Company's business and its future business prospects. As a result, depending upon future price movements and other factors, the board of directors of the Company believes that the repurchase of the common shares are in the best interest of the Company and its shareholders. The Company previously undertook a normal course issuer bid (the "Prior Bid") that commenced on December 21, 2006 and concluded on December 21, 2007. The Company did not purchase any securities pursuant to the Prior Bid.

The Company also announced today that it has recently established new operating locations in Williston, North Dakota and Fort St. John, British Columbia. The Williston location represents CanSub's initial entry into the U.S.A. market, in an area with high activity levels. This area is dominated by drilling and completion activity related to the Baaken light oil play, a play which has also generated a significant amount of work for CanSub in its southeast Saskatchewan operating hubs. The Company will initially offer production testing services in North Dakota and has already transferred two existing production testing packages to the Williston location. Future service offerings in this area will depend on customer demand.

CanSub's new location in Fort St. John, meets the Company's continuing objective of strengthening its presence in northeastern British Columbia. CanSub will initially offer its electric line service from this location, with two electric line units slated to be stationed there shortly.

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