ESTRELLA INTERNATIONAL ENERGY SERVICES LTD.
TSX VENTURE : EEN

ESTRELLA INTERNATIONAL ENERGY SERVICES LTD.

April 29, 2011 09:25 ET

Estrella Closes $20 Million Bought Deal Short Form Prospectus Offering

CALGARY, ALBERTA--(Marketwire - April 29, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Estrella International Energy Services Ltd. ("Estrella" or the "Company") (TSX VENTURE:EEN), is pleased to announce that it has completed its previously announced bought deal public offering (the "Offering") of 28,600,000 common shares in the capital of Estrella (the "Offered Shares"). The Offering was made pursuant to a short form prospectus dated April 21, 2001. The Offered Shares were issued at a price of CDN$0.70 per share for aggregate gross proceeds of CDN$20,020,000.

The Offering was conducted by Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd. as co-lead underwriters (the "Underwriters"). As consideration for the services provided in connection with the Offering, the Company paid a cash commission of CDN$1,001,000 to the Underwriters which commission represents 5% of the gross proceeds of the Offering.

The Offered Shares have been conditionally approved for listing on the TSX Venture Exchange.

Estrella intends to use the net proceeds from the sale of the Offered Shares to purchase additional assets to expand its current rig fleet and tool rental business, to pay a portion of the consolidation costs for the previously announced acquisition of Petroland SAS ("Petroland") and Zigma Columbia Petroleum Services S.A. ("Zigma") (including the repayment of previously existing debt of Petroland and Zigma which was acquired by the Company in connection with those acquisitions), and for working capital purposes.

Statements in this press release may contain forward-looking information, including proposed use of funds by the Company. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Forward-looking statements in this press release include, but are not limited to, statements with respect to the future business plans and services of the Company.

The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Estrella. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and Estrella does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

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

  • Estrella International Energy Services Ltd.
    Christian Bauwens
    Chief Financial Officer
    +54 (11) 5217-5250
    +54 (11) 5217-5280
    info@estrellasp.com

    Estrella International Energy Services Ltd.
    Warren Levy
    Chairman & Chief Executive Officer
    +54 (11) 5217-5250
    +54 (11) 5217-5280
    info@estrellasp.com