Essential Energy Services Ltd.

Essential Energy Services Ltd.

October 08, 2014 18:00 ET

Essential Energy Services Announces the Sale of Rod Rig Assets

CALGARY, ALBERTA--(Marketwired - Oct. 8, 2014) - Essential Energy Services Ltd. (TSX:ESN) ("Essential" or the "Company") announces it has completed the sale of its rod rig assets to Rapid Rod Service Ltd. for cash proceeds of $6.1 million effective October 8, 2014. The sale included 13 rod rigs, related equipment and inventory. The rod rig employees are expected to transfer with the purchased assets. These assets were part of the service rig division but considered non-core to Essential's focus on well servicing through coil tubing, service rigs and downhole tools. Essential expects to use the proceeds to reduce bank debt.


Essential is a growth-oriented, dividend paying corporation that provides oilfield services to producers in western Canada for producing wells and new drilling activity. Essential operates the largest coil tubing well service fleet in Canada with 47 coil tubing rigs and a fleet of 55 service rigs. Essential also sells, rents and services downhole tools and equipment including the Tryton Multi-Stage Fracturing System (Tryton MSFS®). Further information can be found at


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. In particular, this news release contains forward-looking statements including the transfer of rod rig employees and the use of proceeds to reduce bank debt.

Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are made are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that such statements and information will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements.

The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The TSX has neither approved nor disapproved the contents of this press release.

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