Great Prairie Energy Services Inc.

Great Prairie Energy Services Inc.

August 25, 2015 20:16 ET

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

CALGARY, ALBERTA--(Marketwired - Aug. 25, 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 in tranches up to September 30, 2015 for a minimum of $2,000,000 and a maximum of $5,000,000 in gross proceeds. Completion of the financing is subject to receipt of all normal regulatory approvals, including approval of the TSX Venture Exchange. The Company expects that the proceeds of the private placement financing will be available to be applied to the Company's operations.

The Company also announces that it has taken steps to replace its existing credit facility with one that has a longer term and that the Company considers to be more flexible. To that end, the Company has signed a non-binding term sheet with a private lender for a credit facility with both term and revolving loan facility components. Additionally, the Company anticipates that an acquisition facility will also be made available to the Company.

The new facilities will be subject to rates and terms competitive with the credit facilities offered by Canadian banks. Advances to the Company under its operating line of credit had exceeded the maximum permitted, placing the Company in default of its existing credit facilities. The Company has entered into a forbearance agreement with its current lender and the lender has agreed that, subject to certain conditions, it will forbear from enforcing any default remedies until after October 14, 2015. Great Prairie's current lender is working with the Company to facilitate an orderly transition of the Company's existing credit facility to the new lender. Great Prairie anticipates that the new lending facility will be in place by on or prior to September 30, 2015.

The Company has been experiencing growth in revenue in recent months and anticipates that the successful outcome of the private placement and new credit facility 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, 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 transition to the new credit facility, the anticipated use of net proceeds from the private placement, the terms and the anticipated timing of the transition to the Company's new credit facility, the successful negotiation of a new credit facility with the new lender on reasonable and competitive terms, and the willingness of the Company's current lender to continue to forbear.

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 and the negotiation of a new credit facility. 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 existing lender will continue to forbear, that the Company will meet the conditions of the forbearance agreement and consequently cause the lender to exercise default remedies it has, or that a new credit facility will be successfully negotiated with a new 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 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