Ceiba Energy Services Inc.
TSX VENTURE : CEB

Ceiba Energy Services Inc.

October 02, 2013 09:00 ET

Ceiba Energy Services Announces Record Volumes for Q3 at Silver Valley, With 33% Growth Over Q2 and the Upcoming Opening of the New Chamberlain Facility

CALGARY, ALBERTA--(Marketwired - Oct. 2, 2013) -

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Ceiba Energy Services Inc. ("Ceiba Energy" or the "Company") (TSX VENTURE:CEB) a provider of specialized services to the energy sector, is pleased to announce the following:

  • Record volumes at the Silver Valley facility delivering growth of 266% over Q3 2012, 45% growth over Q1 2013 and 33% growth over Q2 2013;
  • Construction of the Chamberlain facility is on schedule to open in the fourth quarter;
  • Official launch of new website, www.ceibaenergy.com and corporate presentation.

Operational Updates

Silver Valley:

The facility received approximately 33,000 cubic metres of produced water and emulsion volumes for the third quarter. This volume represents an approximate increase of 266% over Q3 2012, a 33% increase over the second quarter of 2013 and a 46% increase over the first quarter of 2013, the quarter that typically delivers the highest volumes for the industry. This increase is attributed to the continued optimization of the facility, and an expanding customer base in the area as a result of focused marketing efforts.

Additionally the Company expects to receive approval for the expansion of the Silver Valley facility to allow for additional capacity and improvements in offloading capabilities. Management expects that the continued strong demand in the area for the Company's services and this expansion will allow Ceiba Energy to capture additional volumes that currently exist in the market. The Company plans to proceed with the expansion after break-up in 2014 with a target to double receipts and processing capacity at the facility over the next year.

Chamberlain:

After the successful completion of the workover well in early July, the Company immediately commenced construction on the Chamberlain facility in Strathcona, Edmonton. This work has proceeded on time and on budget and is approximately 85% complete. Management currently forecasts the facility to be operating by early November 2013. For pictures and additional information on the progress at Chamberlain, please visit our website at www.ceibaenergy.com.

The facility, originally scheduled to operate with a 12 hour shift, will open with extended hours due to the high level of advance interest from new and current clients in the area. Chamberlain is a Custom Treating Facility and is licensed to receive emulsion for treating and produced water for disposal.

The opening of the Chamberlain facility will provide the Company with three operational facilities contributing revenue and operating margin to the Company in the fourth quarter.

"We are extremely pleased with delivering record volumes for three quarters in a row at the Silver Valley facility and moving forward with the expansion," said Ian Simister, President, "Further, the opening of the Chamberlain facility in the fourth quarter will be a major milestone in executing the growth plan for the Company."

Future Plans and Outlook

With the Chamberlain facility nearly completed, the Company is now focusing on its capital and growth plans for 2014 and will provide more detail as the budgets are completed. However, the Company expects that these plans will include expanding services at the Silver Valley facility in 2014 as well as developing two new targeted wastewater disposal facilities. The Company continues to evaluate and seek additional acquisition and expansion opportunities.

The Company is pleased to announce the relaunch of its corporate website, www.ceibaenergy.com. The Company's new corporate presentation is available on the website.

About Ceiba Energy

Ceiba Energy provides specialized services to the energy sector, specifically to companies involved in the exploration, extraction and production of oil and natural gas in under serviced market space through out Western Canada. Ceiba Energy develops and constructs facilities in proximity to its customers to provide treatment of crude oil emulsion, terminalling, storage and marketing of oil and disposal of production water.

Reader Advisory

Certain information regarding Ceiba Energy in this news release, including management's assessment of the expected time of completion of the Chamberlain facility and the expected capacity of the Silver Valley facility, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with facility construction and oilfield services operations, general risks associated with oil and gas exploration, development, production, marketing and disposal of waste, loss of markets, environmental risks, competition from other service providers, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Ceiba Energy's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements or information contained in this news release are made as of the date hereof and Ceiba Energy does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.

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