Cordy Oilfield Services Inc.
TSX VENTURE : CKK

Cordy Oilfield Services Inc.

March 26, 2009 09:28 ET

Cordy to Evaluate Strategic Alternatives

CALGARY, ALBERTA--(Marketwire - March 26, 2009) - Cordy Oilfield Services Inc. ("the "Corporation" or "Cordy") (TSX VENTURE:CKK) announces that it has 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. GIL advised that in the event that it does make such an offer, the price of $0.20 would be subject to adjustment on a dollar for dollar basis should the costs incurred by Cordy in connection with such offer exceed $150,000. GIL further advised that such an offer would be subject to conditions customary for a transaction of this nature. Such an offer would be considered to be an insider bid under TSX Venture Exchange Policy 5.9 Protection of Minority Security Holders in Special Transactions due to the relationship of George Armoyan, a director of Cordy, to GIL.

The Board of Directors of the Corporation has constituted a Special Committee of independent directors to investigate and evaluate strategic alternatives available to the Corporation, including but not limited to, the alternative presented by GIL. In addition to taking other steps to carry out its mandate, the Special Committee will retain an independent valuator to prepare the formal valuation of Cordy that would be included in the offer to purchase and takeover bid circular which may be issued by GIL.

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.

Neither the 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

  • 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