GASFRAC Energy Services Inc.
TSX VENTURE : GFS

GASFRAC Energy Services Inc.

December 22, 2010 09:23 ET

GASFRAC Energy Services Inc. Announces Closing of $95,003,350 Bought Deal Offering of Common Shares and Exercise of $14,250,502 Over-Allotment Option

CALGARY, ALBERTA--(Marketwire - Dec. 22, 2010) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

GASFRAC Energy Services Inc. ("GASFRAC" or the "Company") (TSX VENTURE:GFS) is pleased to announce that it has closed its previously announced bought deal offering of common shares (the "Offering"). Pursuant to the terms of the Offering, the Company issued 12,929,450 common shares (the "Common Shares") at a price of $8.45 per Common Share (the "Offering Price") for aggregate gross proceeds of $109,253,853, which includes gross proceeds of $14,250,502 relating to the issuance of 1,686,450 Common Shares pursuant to the over-allotment option granted to the underwriters. The Offering was completed through a syndicate of underwriters lead by Raymond James Ltd. and including Cormark Securities Inc., BMO Capital Markets and Macquarie Capital Markets Canada Ltd.

In addition to the Company's current cash balance and available debt, GASFRAC will use the net proceeds from the Offering to fund the Company's previously announced 2011 capital expenditure program of $150 million. Pursuant to the 2011 capital program, GASFRAC intends to expand its hydraulic horsepower ("HHP") by 45% from 105,000 HHP in Q1 2011 to 152,500 HHP in Q4 2011 and intends to increase the Company's proppant and fluid handling capabilities by 100%.

This press release does not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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 "intends", "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, GASFRAC's 2011 capital expenditure program 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 "Narrative Description of the Business of GASFRAC" in the joint information circular and proxy statement relating to the amalgamation of GASFRAC with Kierland Capital Corporation dated July 7, 2010 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.

Neither 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.

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