Great Prairie Energy Services Inc.

March 10, 2014 08:00 ET

Great Prairie Announces Completion of Green Dawg Inc. Acquisition

CALGARY, ALBERTA--(Marketwired - March 10, 2014) -


Great Prairie Energy Services Inc. (TSX VENTURE:GPE) ("Great Prairie") is pleased to announce that it has completed its previously announced purchase of all issued and outstanding shares of Green Dawg Inc. ("Green Dawg"), a private automated catwalk rental company for $3,800,000 subject to certain performance hurdles. The purchase price represents an EBITDA multiple of 2.9x if Green Dawg meets all performance hurdles.

Green Dawg operates eleven automated catwalk units in both Saskatchewan and Alberta with a focus on the Lloydminster oil region. Great Prairie management feels the acquisition is a great addition to its existing fleet of rental equipment and expects to allocate capital towards expanding the business not only in the Lloydminster region but also into our current operating area of Kindersley Saskatchewan. Management feels that Great Prairie can profitably expand Green Dawg and intends to use the Green Dawg platform to cross sell its existing rental offerings into the Lloydminster region.

The $3,800,000 all cash purchase price of Green Dawg is subject to certain performance hurdles as follows:

  1. $2,750,000 in cash payable upon closing of the transaction; and
  2. up to a maximum of $1,050,000 in cash based upon achieving certain performance milestones over a 12 month period following closing of the transaction.

About Great Prairie Energy Services Inc.

Great Prairie is a Canadian energy oilfield rental and hauling company focused on servicing oil and gas activity in Saskatchewan and Alberta.

Forward Looking Statements

This news release may contain forward looking information that represents Great Prairie's internal projections, expectations, estimates or beliefs concerning, among other things, future operating results and various components thereof or Great Prairie's future economic performance. All statements other than the statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expects", "projects", "plans", "anticipates", and similar expressions. The projections, estimates and beliefs contained in such forward-looking statements are based on management's assumptions relating to Great Prairie's performance and competition within the sectors in which it competes, the continuation of the current regulatory and tax regimes in the jurisdictions in which Great Prairie operates, and necessarily involve known and unknown risks and uncertainties, including risks and assumptions relating to client service demand, field service costs, labour rates, and other factors that may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted or suggested. Great Prairie does not undertake to update any forward-looking information in this document whether as to new information, future events or otherwise.

Non-IFRS Measures

The term "EBITDA" is a financial measure used in this document which is not a standard measure under International Financial Reporting Standards ("IFRS"). Great Prairie's method of calculating EBITDA may differ from the methods used by other issuers. Therefore, Great Prairie's measure of EBITDA, as presented in this press release, may not be comparable to similar measures presented by other issuers. EBITDA refers to net earnings determined in accordance with IFRS before depreciation, amortization of intangible assets, interest expense and income tax expense. Investors are cautioned that EBITDA, as a non-IFRS measure, is not an alternative to measures under IFRS and should not, on its own, be construed as an indicator of performance or cash flows, a measure of liquidity or as a measure of actual return.

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