Central Alberta Well Services Corp.

Central Alberta Well Services Corp.

May 02, 2007 18:33 ET

Central Alberta Well Services Announces Progress on Brookfield Equity Financing and Mailing of Meeting Circular

CALGARY, ALBERTA--(CCNMatthews - May 2, 2007) -


Central Alberta Well Services Corp. (TSX VENTURE:CWC) ("Central Alberta" or the "Company") announces that it is proceeding with its previously announced transaction for a $113 million recapitalization of the Company (the "Equity Financing"). The transaction involves an equity investment of up to $50 million in the Company by Tricap Partners Ltd. and the restructuring of the Company's existing $63 million three year term senior credit facility provided by Brookfield Bridge Lending Fund Inc. into a long-term revolving facility.

The Company advises that the details of the Equity Financing have been outlined in its Information Circular for the Annual and Special Meeting to be held at the Fairmont Palliser Hotel on Thursday, May 31, 2007 at 10:00 a.m. The Information Circular was mailed today along with the Company's Financial Statements, Annual Report containing information about the Company and the Management's Discussion & Analysis for the fiscal year ending December 31, 2006. In addition to the resolutions approving the Equity Financing, the Information Circular provides for standard annual business resolutions including amending the Company's revolving Stock Option Plan and special resolutions for shareholders to approve amendments to the Articles of the Company, a reduction in the stated capital of the Company and granting of discretion to the directors of the Company to consolidate the Common Shares of the Company on a one for four (1:4) basis.

About Central Alberta Well Services

Central Alberta Well Services is headquartered in Red Deer, Alberta with additional operating centres in Eastern and Northern Alberta. 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.


Certain statements contained in this press release, including statements which may contain such word as "could", "should", "believe", "expect", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking statements including, but not limited to, statements as to: future capital expenditures, including the amount and nature thereof; business strategy; expansion and growth of the Company's business and operations; and other matters. 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 know 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. Any forward looking statements made previously may be inaccurate now.

Common Shares Issued: 41,873,273

The TSXV has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Central Alberta Well Services Corp.
    Darryl E. Wilson
    President and Chief Executive Officer
    (403) 341-3933
    Email: darrylwilson@cawsc.com
    Central Alberta Well Services Corp.
    Darcy A. Campbell
    Chief Financial Officer
    (403) 341-3933
    Email: darcycampbell@cawsc.com
    Central Alberta Well Services Corp.
    6763 76th Street
    Red Deer, AB. T4P 3R7
    Website: www.cawsc.com