Dalmac Energy Inc.

Dalmac Energy Inc.

March 15, 2005 19:27 ET

Dalmac Finalizes Purchase


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DALMAC ENERGY INC.

TSX VENTURE SYMBOL: DAL

MARCH 15, 2005 - 19:27 ET

Dalmac Finalizes Purchase

EDMONTON, ALBERTA--(CCNMatthews - March 15, 2005) - John Babic,
President and CEO of Dalmac Energy Inc. ("Dalmac") (TSX VENTURE:DAL.P)
announces that, on March 14, 3005, it has finalised the agreement to
purchase the business and assets of S Young Oilfield Ltd., a company
engaged in "hydro vac" operations in the Fox Creek, Alberta region.
"Hydro vac" operations are primarily involved with excavation and
trenching work and rarely involve contact with contaminated materials.
This acquisition will be complementary to Dalmac's straight and combo
vac operations in the areas of Fox Creek, Hinton, and Grande Cache,
which almost exclusively involves working with contaminated material.

The assets to be purchased consist of 2 "hydro vac" units, 1 combination
steamer and 1 steaming unit. The total purchase price was $850,000,
which consisted of $150,000 cash, $124,000 to be paid by issuing Dalmac
shares at $0.59, Dalmac pay out approximately $190,000 in debt on the
equipment, and the balance will be financed by the Vendor over 3 years.
For the 12 months ended September 30, 2004, S Young Oilfield Ltd.
reported revenues of approximately $950,000 and a net income of
approximately $100,000 (based on unaudited information).

In response to the increasing activity and demand for "hydro vac"
operations, and in addition to the above purchase, Dalmac has purchased
and is expected to take delivery of a new "hydro vac" unit some time in
May of 2005. This will increase the number of "hydro vacs" to 3 units.
These acquisitions are expected to complement and expand Dalmac's
current operations of its subsidiary, McClelland Oil Services Inc.

Dalmac Energy Inc. is a provider of "hot oiler", "vacuum", "pressure"
and "tanker truck" services to the energy sector. Dalmac Energy Inc.
also provides methanol/glycol delivery and distribution services.
Including the above mentioned operating equipment, Dalmac's fleet will
consists of 58 service units that primarily service the west central
Alberta areas of Fox Creek, Hinton and Grande Cache. Dalmac's customer
base consists of the major the oil and gas producers, well servicing and
drilling contractors operating in the service area.

Completion of the transaction is subject to approval of the TSX Venture
Exchange.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Dalmac Energy Inc.
    John Babic
    (780) 909-4220
    (780) 465-0199 (FAX)
    jbabic@allstream.net
    THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
    OR ACCURACY OF THIS RELEASE