Cordy Oilfield Services Inc.

Cordy Oilfield Services Inc.

April 19, 2007 18:34 ET

Cordy to Acquire Bry-Don and Expands Construction Division to Grande Prairie

CALGARY, ALBERTA--(CCNMatthews - April 19, 2007) - Cordy Oilfield Services Inc. ("Cordy") (TSX VENTURE:CKK) announces that it has entered into a letter of intent which sets forth the basic terms and conditions for its acquisition of Bry-Don Oilfield Contracting Ltd. ("Bry-Don").

Bry-Don, established in 2001, provides oilfield construction, road building and reclamation services to the Spirit River and Grande Prairie oil and gas production area from its operations base in Spirit River. Bryan Johnson, Bry-Don's principal and founding shareholder, will remain as the operational head of Bry-Don following the completion of the acquisition. Mr. Johnson has been in the heavy construction business for approximately thirty years.

The purchase price for Bry-Don is $6,000,000, made up of $3,600,000 in cash and $2,400,000 by way of issuance of 1,200,000 common shares of Cordy at the deemed price of $2.00 per share. The purchase price will be subject to adjustment as at May 1, 2007. The acquisition is anticipated to close on May 31, 2007.

Cordy further announces that it is expanding its Battle River oilfield construction division to Grande Prairie, Alberta. Battle River is based in Manning Alberta and currently provides construction services in the oil and natural gas fields of the northwestern area of Alberta, as well as municipal infrastructure projects. The newly announced Grande Prairie arm of Battle River will operate from a joint use facility shared with New West Pipeline Ltd. (formerly, NWP Construction Ltd.), another wholly owned subsidiary of Cordy. Certain Battle River personnel will be relocated to Grande Prairie and will work to integrate their efforts with the newly acquired Bry-Don.

Cordy's Chairman and CEO David Mullen indicates that the Grande Prairie expansion will enable the Cordy operations to serve a larger region more effectively. "The purchase of an outstanding operation like Bry-Don together with the establishment of Battle River in Grande Prairie will enable us to grow and expand our quality services. We are very enthusiastic about the team we have assembled and the opportunities the Grande Prairie market presents."

The acquisition of Bry-Don is an arm's length transaction and its completion is subject to the satisfaction of certain conditions precedent, including but not limited to due dilligence on behalf of the parties and the acceptance of the TSX Venture Exchange.

Cordy Oilfield Services Inc. owns businesses in the oilfield services and construction sectors and is implementing a strategy of growth through acquisition.

The TSX Venture Exchange does not accept responsibility for the accuracy or adequacy of this release.

Contact Information

  • Cordy Oilfield Services Inc.
    David Mullen
    (403) 266-2067
    (866) 854-8075 (FAX)
    For investor relations information:
    Cordy Oilfield Services Inc.
    David Orr
    Vice President - Corporate Development