EcoMax Energy Services Ltd.

EcoMax Energy Services Ltd.

April 07, 2006 09:20 ET

EcoMax Announces Debenture Redemption / Option Exercise

CALGARY, ALBERTA--(CCNMatthews - April 7, 2006) - EcoMax Energy Services Ltd. (TSX Venture:EES) ("EcoMax") announces that the Company has allowed redemption by certain directors of the Company of $107,000 of its 12% debenture due June 2007. The partial redemption was made with the approval of all holders of this debenture and will result in $65,000 of the debenture remaining outstanding and due in June 2007. The proceeds were used exclusively by the debenture holders to exercise stock options. The Company issued 470,000 shares at $0.23 per share under these options. After the issue the Company has 24,843,479 shares issued and outstanding.

The Company's management believes that these transactions are in the best interest of the Company since they reduce the Company's debt exposure, and increase equity, without expending cash. The redemption will also reduce interest expense by approximately $11,000 per year and will reduce the amount of the debenture that would have become a current liability in June 2006, thereby improving working capital as at that date. These benefits to the Company's financial position will put it a better position to fund future growth.

EcoMax Energy Services Ltd. is an oilfield services company whose product offering includes BOP and valve sales and service solutions to the oil and gas and other industries in Western Canada and the patented EcoMax Chemical Pump. The EcoMax Pump reduces operating costs and greenhouse gas emissions at natural gas installations by utilizing a small pressure differential from the wellhead to the flow line to power a methanol chemical injection pump, which prevents hydrates from forming at the wellhead. The pump returns the exhaust gas to the sales line increasing natural gas sales and eliminating wellhead atmospheric emissions. The EcoMax Pump offers significant economic benefits to customers while enhancing safety and landowner relations. Operators can sell gas now being emitted to the atmosphere from sweet gas facilities, eliminate the need for propane at sour gas facilities and may accumulate carbon credits for greenhouse gas reductions. The EcoMax Pump addresses issues in the Kyoto agreement and Alberta Energy and Utilities Board Guide 60 on the emission of fugitive gases from well sites.

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

Contact Information