GASFRAC Energy Services Inc.
TSX : GFS

GASFRAC Energy Services Inc.

February 08, 2012 08:17 ET

GASFRAC Announces Closing of $40.25 Million Convertible Debenture Offering

CALGARY, ALBERTA--(Marketwire - Feb. 8, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

GASFRAC Energy Services Inc. ("GASFRAC" or the "Company") (TSX:GFS) is pleased to announce that it has completed its previously announced bought deal offering (the "Offering") of 7.00% convertible unsecured subordinated debentures (the "Debentures"), including the exercise in full of the underwriters' over-allotment option, resulting in aggregate gross proceeds of $40,250,000. The Offering was conducted by way of a short form prospectus dated February 1, 2012 through a syndicate of underwriters led by Raymond James Ltd. and included BMO Capital Markets, Cormark Securities Inc., TD Securities Inc., Scotia Capital Inc., AltaCorp Capital Inc. and Haywood Securities Inc., who purchased a total of 40,250 Debentures at a price of $1,000 per Debenture.

GASFRAC intends to use the net proceeds of the Offering to fund capital expenditures associated with GASFRAC's previously announced equipment expansion program, working capital and for general corporate purposes. The Debentures will be listed for trading on the TSX under the symbol GFS.DB.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States except pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws.

About GASFRAC

GASFRAC is an oil and gas service company headquartered in Calgary, Alberta, Canada, whose primary business is to provide LPG fracturing services to oil and gas companies in Canada and the USA.

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking information and statements that are based on GASFRAC's current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In this news release, such forward-looking information and statements can be identified by terminology such as "will", "to be", "expected", "anticipated" and similar expressions.

In particular, this news release contains forward-looking statements and information relating to the planned use of proceeds of the Offering. These forward-looking statements and information are being made by GASFRAC based on certain assumptions that GASFRAC has made in respect thereof as at the date of this document, including: that favourable growth parameters continue to exist in respect of current and future growth plans (including the ability to finance such plans on favourable terms); and that GASFRAC's businesses will continue to achieve sustainable financial results. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties, including, but not limited to: non-performance of agreements in accordance with their terms; the seasonal nature of the North American oil and gas industry; the impact of competitive entities and pricing; reliance on suppliers for components; reliance on intellectual property rights; the strength and operations of the oil and natural gas production industry and related commodity prices; the continuation or completion of third-party projects; regulatory environment and inability to obtain required regulatory approvals; tax laws and treatment; fluctuations in operating results; the ability of GASFRAC to raise sufficient capital to complete future projects and satisfy future commitments; construction delays; labour and material shortages; and certain other risks detailed from time to time in GASFRAC's public disclosure documents including, among other things, those detailed under the heading "Risk Factors" in the annual information form of GASFRAC dated March 17, 2011 which can be found at www.sedar.com.

Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected. Such forward-looking statements are expressly qualified by the above statements. GASFRAC does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws.

Contact Information

  • GASFRAC Energy Services Inc.
    James M Hill
    Chief Financial Officer
    403-515-3387
    jhill@gasfrac.com