Cordy Oilfield Services Inc.
TSX VENTURE : CKK

Cordy Oilfield Services Inc.

June 30, 2011 18:20 ET

Cordy Announces Closing of RB2 Energy Services Inc. Acquisition

CALGARY, ALBERTA--(Marketwire - June 30, 2011) - CORDY OILFIELD SERVICES INC. (the "Corporation" or "Cordy") (TSX VENTURE:CKK) announced today that it has completed the previously announced acquisition of all the issued and outstanding shares of RB2 Energy Services Inc. ("RB2"). The acquisition was funded by the issuance of 2,900,000 common shares ("Cordy Shares") at a deemed price of $0.50 per share, a cash payment of approximately $0.6 million, a promissory note of approximately $0.3 million, and the assumption of debt and repayment of shareholder loans in the amount of approximately $0.8 million. The final purchase price is subject to certain closing adjustments which are to be determined 60 days from closing. Concurrent with the completion of the acquisition of RB2 by Cordy, RB2 entered into an employment agreement with Rod Birnie-Brown, the general manager and former owner of RB2. The transaction is subject to the acceptance of the TSX Venture Exchange.

RB2 Energy Services provides hydro-vac and fluid related services to the oil and liquids rich natural gas sector, principally in the Calgary and Fort McMurray regions.

Cordy Oilfield Services Inc. is an energy services and construction corporation that offers services across Alberta and British Columbia in the construction, environmental, manufacturing and pipeline sectors.

Additional information on Cordy is available on our website www.cordy.ca or on SEDAR at www.sedar.com.

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Forward-Looking Statements: Certain statements contained in this news release constitute forward-looking statements. These statements relate to future events or the Corporation's future performance. All statements, other than statements of historical fact, that address activities, events or developments that the Corporation or a third party expects or anticipates will or may occur in the future, including the Corporation's future growth, results of operations, performance and business prospects and opportunities, prevailing economic conditions; commodity prices; sourcing, pricing and availability of raw materials, component parts, equipment, suppliers, facilities and skilled personnel; dependence on major customers; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; regional competition; and other factors, many of which are beyond the control of the Corporation, including future prices of oil and natural gas and oil and gas industry activity including the effect of changes in commodity prices on oil and gas exploration and development activity, ability to complete strategic acquisitions and realize the perceived benefits of any acquisitions that are completed and the Corporation's outlook regarding the competitive environment it operates in, and the assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Corporation that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. The Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities laws. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Further information regarding risks and uncertainties relating to Cordy and its securities can be found in the disclosure documents filed by Cordy with the securities regulatory authorities, available at www.sedar.com.

Non-GAAP Measures - Cordy uses the measures Earnings Before Interest, Taxes, Depreciation, Amortization and Impairment and Stock Based Compensation (EBITDAS) in this news release. This measure does not have any standardized meaning prescribed by Canadian generally accepted accounting principles (GAAP). It is, therefore, considered to be non-GAAP measures and may not be comparable to similar measures presented by other entities. Management of Cordy uses these non-GAAP measures to improve its ability to compare financial results among reporting periods and to enhance its understanding of operating performance, liquidity and ability to generate funds to finance operations. This non-GAAP measure is also provided to readers as additional information on Cordy's operating performance, liquidity and ability to generate funds to finance operations.

EBITDAS is an approximate measure of the Cordy's pre-tax operating cash flow and is generally used to better measure performance and evaluate trends of individual assets. EBITDAS comprises earnings before deducting interest and other financial charges, income taxes, depreciation and amortization, net income attributable to non-controlling interests and preferred share dividends.

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.

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