Great Prairie Energy Services Inc.
TSX VENTURE : GPE

Great Prairie Energy Services Inc.

July 22, 2015 17:00 ET

Great Prairie Energy Services Inc.: Corporate Update - Private Placement and Credit Facility

CALGARY, ALBERTA--(Marketwired - July 22, 2015) - Great Prairie Energy Services Inc. (TSX VENTURE:GPE) ("Great Prairie" or the "Company") announces that it now anticipates that the private placement announced on July 6, 2015 will be completed on August 7, 2015 for a minimum of $2,000,000, and a maximum of $5,000,000, in gross proceeds, as previously announced. Completion of the financing is subject to receipt of all normal regulatory approvals, including approval of the TSX Venture Exchange.

The Company and its lender are currently discussing terms of a new loan agreement which will govern both an existing operating line of credit as well as a term facility. The renegotiation of the loan agreement is in response to notice it received from its lender advising that advances to the Company under its operating line of credit have exceeded the maximum permitted. The lender has agreed with the Company that it will not seek to enforce any remedies it has until after August 14, 2015 subject to certain conditions. This is after the private placement is expected to have been completed.

The Company expects that a portion of the proceeds of the private placement financing will be applied to the operating line of credit, thereby rectifying the breach, and the remaining portion will be applied to the Company's business and operations. The Company is experiencing growth in revenue, in part due to resumed operational activity after seasonal break up, and anticipates that the successful outcome of the private placement and amended loan agreement terms should enable the Company to generate positive financial results in the future.

About Great Prairie Energy Services Inc.

Great Prairie Energy Services Inc. is a Canadian energy services company focused on servicing oil and gas activity in Saskatchewan and Alberta. Great Prairie provides general oilfield hauling, equipment rental and frac fluid services out of Kindersley, Saskatchewan and Drumheller, Sundre, Rocky Mountain House and Valleyview, Alberta through its operating entities.

Forward-Looking Statements and Reader Advisory

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements are often, but not always, identified by the use of words such as " "anticipate", "plan", "expect", "may", "will", "should", "project", "predict", "believe" and similar expressions. In particular, this news release contains forward-looking statements about the terms of the private placement, the anticipated closing date of the private placement, the anticipated benefits of the successful completion of the private placement and the negotiation of the new credit facility with the lender, the anticipated use of net proceeds from the placement, the willingness of the Company's lender to continue to forbear and the successful negotiation by the Company of a new credit facility with the lender. The forward-looking statements and information are based on certain key expectations and assumptions made by Great Prairie, including expectations and assumptions concerning the completion of the proposed financing.

Although Great Prairie believes that the expectations and assumptions on which such forward-looking statements and information are based to be reasonable, readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.

Actual results could differ materially from those currently anticipated due to a number of factors and risks. Such factors may include the failure to successfully market the offering and failure to satisfy certain conditions in connection with the issuance of the Units. There is no certainty that the lender will continue to forbear or that a new credit facility may be successfully negotiated with the lender. Other factors which could materially affect such forward-looking information are described in the risk factors in the Company's most recent annual management's discussion and analysis that is available on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements included in this news release are expressly qualified by this cautionary statement.

The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, Great Prairie disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, Great Prairie undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above. There is a significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that management's or third party's assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements.

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