Canadian Sub-Surface Energy Services Corp.
TSX : CSE

Canadian Sub-Surface Energy Services Corp.

March 30, 2006 12:32 ET

Canadian Sub-Surface Energy Services Corp. 'Formerly Canada West Capital Inc.' Announces 2005 Financial Results

CALGARY, ALBERTA--(CCNMatthews - March 30, 2006) - Canadian Sub-Surface Energy Services Corp. (TSX:CSE)today reported its financial results for the year ended December 31, 2005. Prior to a business transaction that occurred effective February 14, 2006, the company operated under the name of Canada West Capital Inc. ("CWC") and traded on the NEX Board of the TSX Venture Exchange. Subsequent to the business transaction, CWC changed its name to Canadian Sub-Surface Energy Services Corp. and commenced trading on the TSX. The audited financial statements of CWC for the year ended December 31, 2005 and the related management's discussion and analysis have been posted on SEDAR.

Since ceasing active operations in the high tech sector during 2003, CWC has been actively pursuing a business combination with an operating entity to fulfill its mandate of maximizing value for its shareholders. On November 29, 2005, CWC announced the signing of a letter of intent to enter into a transaction with Canadian Sub-Surface Energy Services Inc., Canadian Sub-Surface Gas Testing Inc. and 1156853 Alberta Ltd. (the "CanSub Group") all of Calgary, Alberta. The CanSub Group provides primarily cased-hole wireline and production testing services to oil and gas companies in western Canada.

On December 30, 2005, CWC and the CanSub Group entered into an Arrangement Agreement which included the reorganization of CWC's share capital, a $34.0 million brokered private placement financing, and the acquisition of all of the outstanding shares of the CanSub Group. On February 8, 2006, the $34.0 million financing was completed by CWC through the issuance of 8,095,238 Special Shares (later converted to Class A shares) at a price of $4.20 per share. On February 10, 2006 and February 13, 2006 respectively, the Arrangement Agreement received approval from CWC's shareholders and the Court of Queen's Bench of Alberta. On February 14, 2006, CWC completed the acquisition of the CanSub Group for a net purchase price (subject to adjustment) of $49.132 million. The purchase price consisted of the payment of $24.566 million in cash and the remaining $24.566 million in shares. The share component was comprised of 5,491,905 Class A shares and 357,143 Class B shares (both share classes valued at $4.20 per share).

Annual 2005 Financial Results of CWC

CWC recorded a net loss of $301,000 ($0.11 per share) for the year ended December 31, 2005 compared to a net loss for the year ended December 31, 2004 of $268,000 ($0.10 per share). There were no revenues during 2005 or 2004 as there were no active operations carried out by CWC during those periods. The loss reflects the ongoing administrative expenses incurred by CWC while identifying a potential business transaction.

Annual 2005 Financial Results of the CanSub Group

The financial results of the CanSub Group for the year ended December 31, 2005 will be posted on SEDAR over the next week.

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect the views of Canadian Sub-Surface Energy Services Corp. with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made including those factors detailed from time to time in filings made by the company with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Canadian Sub-Surface Energy Services Corp. does not intend and does not assume any obligation to update these forward-looking statements.

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