CALGARY, ALBERTA--(Marketwired - Sept. 2, 2014) - Ceiba Energy Services Inc. ("Ceiba" or the "Company") (TSX VENTURE:CEB) and BK Petersen Holdings Ltd. ("BKP Holdings") have entered into a revised agreement related to the agreements between Ceiba and BKP Holdings.
Ceiba has made significant progress in its long term strategic plan. Since January 2013, Ceiba has optimized its Silver Valley facility, commissioned its Chamberlain facility, acquired three operating disposal wells, achieved quarter-over-quarter increases in total volumes received and revenue, raised over $35 million of debt and equity capital and achieved two consecutive quarters of positive adjusted EBITDA. With this positive progress, and the addition of capital market's experience to Ceiba internal staff, Ceiba and BKP Holdings have mutually agreed to revise their relationship. Ceiba shall make the payments due on September 1, 2014 and on September 30, 2014, as outlined in the existing agreements between Ceiba and BKP Holdings and disclosed in the Company's year-end 2013 audited financial statements. The consulting agreement between Ceiba and BKP Holdings will end effective September 30, 2014 and all future payments that Ceiba has to BKP Holdings will be cancelled. Brian Petersen will also be exercising 500,000 common share options at $0.50 per common share from half of the payments received. Associated with this revised agreement, Ceiba is expected to record an approximate $275,000 non-cash credit to general and administrative expenses in its 2014 Q3 financial statements.
Ian Simister, Ceiba's President, says, "We want to thank Brian for his important contribution to Ceiba's long term business plan. We welcome Brian's continued involvement in Ceiba's growth initiatives and shareholder value creation as a member of our board of directors."
About Ceiba Energy Services Inc.
Ceiba provides specialized services to the energy sector, specifically to companies involved in the exploration, extraction and production of oil and natural gas in Western Canada. Ceiba 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.
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.
Certain statements made herein may constitute forward-looking statements. These statements relate to future events or the future economic performance of Ceiba and carry known and unknown risks, uncertainties and other factors that may appreciably affect their results, economic performance or accomplishments when considered in light of the content or implications to statements made by Ceiba. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Ceiba does not intend and undertakes no obligation to update these forward-looking statements, except as required under applicable securities laws.