Central Alberta Well Services Corp.

Central Alberta Well Services Corp.

September 20, 2005 18:13 ET

Central Alberta Announces Completion of Arrangement and Short Form Offering

CALGARY, ALBERTA--(CCNMatthews - Sept. 20, 2005) - Central Alberta Well Services Corp. ("Central Alberta") is pleased to announce that it has completed the previously announced Arrangement (the "Arrangement") with e-Quisitions Inc. ("e-Quisitions"), whereby Central Alberta amalgamated with e-Quisitions (the "Amalgamation"). The securityholders of Central Alberta and e-Quisitions approved the Arrangement at special meetings held on August 30, 2005 and the Amalgamation of the companies was completed effective September 1, 2005. Following completion of the Amalgamation, Central Alberta, as the successor corporation, had 4,775,008 common shares and 20,561 Series A Convertible Debentures issued and outstanding.

Central Alberta is also pleased to announce that it has completed a short form offering of 1,739,130 common shares at a price of $1.15 per share for gross proceeds of $2 million (the "Financing"). The Financing was led by Wolverton Securities Ltd which was paid a cash commission of 6% of the gross proceeds from the Financing and was reimbursed for certain expenses relating to the Financing. Following completion of the Financing and prior to the conversion of the Debentures, Central Alberta will have 6,514,138 common shares issued and outstanding.

Darryl Wilson, President and Chief Executive Officer of Central Alberta stated: "We are extremely pleased to have completed the first phase of the development of a new oil and gas service company. We anticipate completing the manufacture and delivery of 18 new service rigs and 5 coiled tubing units by January, 2006. We also look forward to providing our services to our valued customers in the industry."

The TSX Venture Exchange has given conditional listing approval for the common shares of Central Alberta issued in connection with the Arrangement and the Financing and once all documents have been filed and approved by the Exchange, it is anticipated that Central Alberta's common shares should commence trading shortly thereafter under the Central Alberta name and the new trading symbol "CWC".

About Central Alberta

Upon completion of the Arrangement and final approval of the TSXV, Central Alberta will be a public company trading on the TSX Venture Exchange. Central Alberta is a newly formed oil and gas service company based in Red Deer, Alberta. It provides well servicing services to oil and natural gas exploration and development companies and currently operates in the exploration and production areas of the Western Canadian oil and gas sedimentary basin. The following are the directors and senior officers of Central Alberta:



Darryl Wilson, President, Chief Executive Officer and Director
Ross O. Drysdale, Corporate Secretary
Jeff Thomson, Director
Rance Fisher, Director
Louis W. MacEachern, Director
Rob Anderson, Director


For more information about Central Alberta please access the company's website at www.cen-alta.ca.

READER ADVISORY

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking information. Actual future results may differ materially from those contemplated.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. Such securities have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

New Trading Symbol "CWC"

Issued and Outstanding: 6,514,138 Common Shares

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Central Alberta Well Services Corp.
    Darryl Wilson
    President and Chief Executive Officer
    Red Deer, Alberta
    (403) 341-3933 or Toll Free: 1-877-341-3933
    Email: darrylwilson@cen-alta.ca
    or
    Central Alberta Well Services Corp.
    Jeff Thomson
    Director
    Calgary, Alberta
    (403) 538-3465
    Email: thomsonj@arrow-energy.com