Cordy Oilfield Services Inc.
TSX VENTURE : CKK

Cordy Oilfield Services Inc.

April 24, 2009 18:46 ET

Cordy Oilfield Services Inc. Special Committee Determines Not to Pursue Geosam's Intention to Make an Offer

CALGARY, ALBERTA--(Marketwire - April 24, 2009) - As previously disclosed in a press release dated March 26, 2009, Cordy Oilfield Services Inc. (the "Corporation" or "Cordy") (TSX VENTURE:CKK) received from Geosam Investments Limited ("GIL") an expression of GIL's intention to make an offer to acquire by way of a takeover bid all of the issued and outstanding shares of the Corporation not owned by GIL at the price of $0.20 per share in cash (the "GIL Initiative"). Cordy established a Special Committee of its Board of Directors to review and assess the GIL Initiative.

In light of the GIL Initiative, certain shareholders, excluding members of the Special Committee, beneficially owning, directly or indirectly, approximately 49.5% of the common shares of Cordy, have communicated to Cordy that they would not tender, and sell, their shares to an offer for the purchase of the issued and outstanding common shares of Cordy at the price of $0.20 per share in cash.

Considering the significant lack of support for the GIL Initiative, the stated intention of GIL to acquire all common shares of Cordy not owned by it at the price of $0.20 per share, and having considered same, including receiving the advice of both the Special Committee's financial advisor, FirstEnergy Capital Corp., and legal counsel, the Special Committee of the Board of Directors of Cordy has determined that the GIL Initiative cannot be completed and, accordingly, it is not in the best interests of Cordy shareholders to further pursue the GIL Initiative. The Special Committee of Cordy will be disbanded having completed its work. The Board of Directors will continue to evaluate other strategic alternatives.

Cordy Oilfield Services Inc. owns businesses in Alberta and British Columbia in the construction, environmental, manufacturing and pipeline sectors and is focused on implementing strategic and organic growth strategies and increasing its focus on the oil sands which could utilize all its business units.

Forward-Looking Statements

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this news release contains forward looking statements and information concerning the intention of GIL to make an offer to acquire by way of a takeover bid all of the issued and outstanding shares of the Corporation not owned by GIL at the price of $0.20 per share in cash (subject to adjustment). The forward-looking statements and information are based on representations made to Cordy by GIL. As such, undue reliance should not be placed on the forward looking statements and information because Cordy can give no assurance that they will prove to be correct. By its nature, such forward-looking information is subject to various risks and uncertainties. These risks and uncertainties may include, but are not limited to, whether any conditions that GIL may have for making such an offer are satisfied. Readers are cautioned not to place undue reliance on this forward-looking information. There is no assurance that GIL will make an offer to acquire all of the issued and outstanding shares of the Cordy not owned by GIL at the price of $0.20 per share in cash or that other alternatives will be available to Cordy. Cordy undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

Contact Information

  • For general information:
    Cordy Oilfield Services Inc.
    David Mullen, Chairman and CEO
    (403) 266-2067
    (403) 266-2087 (FAX)
    Email: dmullen@cordy.ca
    or
    For investor relations information:
    Cordy Oilfield Services Inc.
    David Orr, Senior Vice President
    (403) 266-2067
    (403) 266-2087 (FAX)
    Email: dorr@cordy.ca
    Website: www.cordy.ca