Central Alberta Well Services Corp.
TSX VENTURE : CWC

Central Alberta Well Services Corp.

January 26, 2010 19:30 ET

Central Alberta Well Services Announces Extension to Credit Facilities

CALGARY, ALBERTA--(Marketwire - Jan. 26, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Central Alberta Well Services Corp. ("CWC" or the "Company") (TSX VENTURE:CWC) is pleased to announce the extension of its current credit facility with Brookfield Bridge Lending Fund Inc. ("BBLF") until March 31, 2010. The extension has been granted to allow the Company additional time to continue to evaluate financing alternatives available to replace the existing facility. BBLF has agreed to a nominal extension fee for granting the extension and has also agreed to leave the current interest rate unchanged for the term of the extension.

Following the successful completion of the Rights Offering on December 4, 2009 the Company reduced its outstanding facility with BBLF by $28 million leaving $31.9 million outstanding on the BBLF facility. The Company is currently in discussions with a number of financial institutions to refinance the BBLF facility.

The Company also announces that Brookfield Special Situations Partners Ltd. ("BSSP") has agreed to defer payment of the amount owing on the automatic redemption of the 3,030,303 warrants held by BSSP. Pursuant to the terms of the warrants, if the warrants are not exercised prior to their expiry time on January 26, 2010, the Company was required to redeem them at a price of $0.40 per warrant or an aggregate of $1,212,121.20. The Company has issued a promissory note in respect thereof due on the earlier of demand or March 31, 2010 which is non-interest bearing if paid when due.

About Central Alberta Well Services

Central Alberta Well Services has its corporate office in Calgary, Alberta, with its operational head office in Red Deer, Alberta, and additional operating centres in Provost, Brooks and Grande Prairie, Alberta and a new facility in Weyburn, Saskatchewan. The Company provides oilfield services, including well servicing, coil tubing, snubbing, nitrogen, well testing and oilfield equipment rentals to oil and gas companies operating in the Western Canadian Sedimentary Basin.

READER ADVISORY

Certain statements contained in this press release, including statements which may contain such words as "could", "should", "believe", "expect", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking statements. Management has made certain assumptions and analyses which reflect their experiences and knowledge in the industry. These assumptions and analyses are believed to be accurate and truthful at the time, but the company can not assure readers that actual results will be consistent with these forward-looking statements. However, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the Company's expectations. All forward-looking statements made in the press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected outcomes to, or effects on, the Company or its business operations. The Company does not intend and does not assume any obligation to update these forward-looking statements except as expressly required by applicable securities laws. Any forward-looking statements made previously may be inaccurate now.

Common Shares: 159,184,064

Neither 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 accuracy of this release.

Contact Information

  • Central Alberta Well Services Corp.
    Darryl E. Wilson
    President & Chief Executive Officer
    (403) 264-2177
    darrylwilson@cawsc.com
    or
    Central Alberta Well Services Corp.
    Darcy A. Campbell, CMA
    Vice-President, Finance and Chief Financial Officer
    (403) 264-2177
    darcycampbell@cawsc.com
    or
    Central Alberta Well Services Corp.
    755, 255 - 5 Avenue SW
    Calgary, Alberta T2P 3G6