GasFrac Energy Services Inc.

GasFrac Energy Services Inc.

August 31, 2011 18:40 ET

GASFRAC Enters Into $100 Million Bank Syndication

CALGARY, ALBERTA--(Marketwire - Aug. 31, 2011) - GASFRAC Energy Services Inc. (TSX:GFS) ("GASFRAC") today announced that they have entered into a new $100 million secured syndicated credit facility led by HSBC Bank Canada, Bank of Montreal and Alberta Treasury Branches (collectively with HSBC Bank Canada, the "Lenders").

The facility consists of a $10 million revolving operating credit facility ("Operating Loan") and a $90 million revolving credit facility ("Revolving Facility"). The Revolving Facility may be increased, subject to certain conditions precedent, to $115 million upon the Company's request and Lenders' acceptance. The amount that may be drawn is subject to a borrowing base calculation based upon accounts receivable and capital asset balances. The facility is subject to annual renewals and if not renewed on the Term Date is repayable in equal quarterly payments of 1/12th of the outstanding amount commencing in the second quarter after the Term Date, with the full balance payable on the second anniversary of the Term Date. The facilities are subject to customary financial covenants.

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.

This press release contains certain statements that constitute forward-looking statements under applicable securities legislation. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. These statements are only as of the date of this document and we do not undertake to publicly update these forward looking statements except in accordance with applicable securities laws. Forward-looking statements are based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect and therefore such forward-looking statements should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its products and services. Forward-looking statements are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials. In addition, actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth under the section entitled "Business Risks" in the Company's MD&A.

Contact Information

  • GASFRAC Energy Services Inc.
    James M Hill
    Chief Financial Officer