GasFrac Energy Services Inc.
TSX : GFS

GasFrac Energy Services Inc.

January 18, 2012 08:51 ET

GASFRAC Announces Increase in Previously Announced Public Offering of Convertible Debentures to $35 Million

CALGARY, ALBERTA--(Marketwire - Jan. 18, 2012) -

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

GASFRAC Energy Services Inc. (TSX:GFS) ("GASFRAC" or the "Company") is pleased to announce that, in response to strong investor demand, it has increased its previously announced bought deal public offering from $30 million to $35 million principal amount of convertible unsecured subordinated debentures (the "Debentures") on the same terms as the previously announced offering. A syndicate led by Raymond James Ltd. and including BMO Capital Markets, Cormark Securities Inc., TD Securities Inc., Scotia Capital Inc., AltaCorp Capital Inc. and Haywood Securities Inc. (collectively, the "Underwriters") have agreed to purchase the Debentures at a price of $1,000 per Debenture. GASFRAC has also granted the Underwriters an over-allotment option to purchase up to an additional $5.25 million aggregate principal amount of debentures for a period of 30 days following closing to cover over-allotments.

The net proceeds of the financing will be used for funding of the remaining capital expenditure of the previously announced capital equipment expansion program, working capital and for general corporate purposes.

The offering is scheduled to close on or about February 8, 2012 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

A preliminary short-form prospectus will be filed with securities regulatory authorities in all provinces of Canada, except Quebec.

Please refer to the press release issued by the Company on January 17, 2012 for further details with respect to the offering.

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 and timing for 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