CanGas Solutions Ltd.

April 30, 2012 09:00 ET

CanGas Solutions Ltd. Providing Services for Heritage Gas Ltd.

CALGARY, ALBERTA--(Marketwire - April 30, 2012) - CanGas Solutions Ltd. ("CanGas" or the "Company") is pleased to announce it will commence operations as a key service provider for Heritage Gas Ltd. ("Heritage Gas") in a compressed natural gas delivery project located in Nova Scotia.

CanGas will provide project management consulting services during two phases of the project. Phase 1 will consist of engineering design, equipment procurement, construction and commissioning and will commence in May 2012 and be approximately 12 months in length. Phase 2 will consist of providing management of operations and logistics and will be approximately three years in length. CanGas has retained additional key talent with expertise in compressed natural gas to assist with the project.

President and CEO Greg Loewen said, "We are very excited to work with Heritage Gas to provide their customers an opportunity to save on energy costs with a cleaner, greener source of energy. The experience and knowledge we have in transporting natural gas in the oilfields of Alberta and Saskatchewan are applicable anywhere there is more expensive liquid fuels being consumed. The project will allow Heritage Gas to distribute natural gas to customers remote from pipeline infrastructure."

About CanGas

CanGas Solutions Ltd. is a private, Alberta based oilfield service company whose business is containerized gas transport. The two main services provided are capturing and monetizing raw natural gas that is currently being flared/vented by the energy industry and transporting processed natural gas for use as a fuel to displace diesel or propane.

On March 29, 2012, CanElson Drilling Inc. ("CanElson") entered into an amalgamation agreement (the "Agreement") to acquire all of the issued and outstanding securities of CanGas (the "Acquisition"). The CanGas shareholders will receive as consideration approximately 2.05 million CanElson common shares by way of a share exchange. Certain CanGas shareholders holding approximately 76% of the currently outstanding CanGas shares have signed agreements committing their intention to vote in favour of the Acquisition.

CanElson is traded on the Toronto Stock Exchange and is engaged in the manufacture, acquisition, operation and sale of drilling rigs into business relationships involving CanElson for the oil and gas industry. CanElson currently operates in the western Canadian sedimentary basin (the "WCSB"), the United States and Mexico. CanElson's WCSB operations are focused in Alberta, Saskatchewan and Manitoba. The United States operations are focused in the Permian Basin of west Texas and Williston Basin of North Dakota and Montana. CanElson's Mexico operations are conducted through a joint venture company, Diavaz CanElson de Mexico, S.A. de C.V. ("DCM" or the "Joint Venture"), of which CanElson holds a 50% ownership interest, and is focused in the Ebano-Panuco-Cacalilao ("EPC") fields of the Misantla-Tampico Basin of Mexico. CanElson has begun testing bi-fuel application to its drilling rigs and has a patent pending for the fueling of mobile equipment with stranded or flared natural gas.

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