IROC Energy Services Corp.
TSX : ISC

IROC Energy Services Corp.

April 05, 2007 07:01 ET

IROC Systems Corp. Announces Increase to Credit Facility

CALGARY, ALBERTA--(CCNMatthews - April 5, 2007) -

THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES.

IROC Systems Corp. ("IROC" or the "Corporation") (TSX:ISC) is pleased to announce that it has expanded its credit facilities with the Canadian Western Bank ("CWB") to $50.0 million, an increase of $15.0 million to the current facility. The expanded credit facility now features a $35 million extendable revolving loan available to finance equipment purchases, a $12.5 million demand revolving operating credit line available for day to day operations and a $2.5 million lease line of credit available to refinance or acquire leased equipment.

The credit facility carries interest at the CWB's prime rate plus 0.75% on the demand revolving operating credit line and at the CWB's prime rate plus 1.0% on the extendable revolving loan, and is renewable annually, subject to mutual consent and the Corporation maintaining certain financial covenants. The demand revolving operating credit line and extendable revolving loan require interest payments only during the term of the facility. To the extent that the revolving loan facility is not renewed, debt repayments on the revolving loan would be amortized over a three-year period.

Tom Alford, President and CEO of IROC commented that "we are pleased that the Canadian Western Bank has committed to continuing and expanding their participation in IROC's business and future growth. Expansion of our facility with the Canadian Western Bank will allow IROC to execute its capital expenditure program for 2007 as previously announced and provides increased flexibility that will enable further capital expenditure plans to be implemented in the coming year, if warranted by industry conditions. Additionally Mr. Alford said that "this revised credit facility also contains features that will give IROC the benefit of reclassifying the current CWB debt, in part, as a long term debt, thereby allowing for a clear indication of our true working capital position."

About IROC Systems Corp.

IROC Systems Corp is an Alberta based oilfield services company that, through the IROC Energy Services Partnership, supplies a comprehensive and diverse range of products, services and equipment to the oil and gas industry, including: IROC's well servicing division, Eagle Well Servicing, which operates free standing single and double service rigs across Central and Southern Alberta; IROC's drilling division, Mission Drilling, which began operations in the first quarter of 2007 when IROC purchased four drilling rigs rated to depths of approximately 3400 meters; IROC's rental division, Aero Rentals, which offers a wide range of rental equipment to the oil and gas industry in Alberta; IROC's lease construction division, Envirocore, which offers lease building and road construction services; IROC's safety division, IROC Safety, which has developed key technologies to address remote air quality monitoring, designed and deployed air breathing systems and provides a complete range of safety services for drilling, completion, production and plant shut-down operations; IROC's communications division, Oricomm, which provides premium communication solutions to a variety of customers in the oil and gas industry; and Canada Tech Corp, which has developed and offers a wide line of memory gauges and permanent monitoring systems that measure pressure and temperature in the downhole and surface environment of oil and gas wells.

Publicly reported information regarding IROC Systems Corp. is available at www.sedar.com.

Cautionary Statements

Certain statements contained in this press release may constitute forward looking statements concerning, among other things, expected revenues, expected expenses, profits, developments and strategies for IROC's operations all of which are subject to certain risks, uncertainties and assumptions. These forward looking statements are identified by their use of terms and phrases such as "anticipate", "continue", "estimate", "expect", "may", "will", "projected", "should", "believe" and other similar terms and phrases. By its nature, such forward looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements. These risks include, but are not limited, to the risks associated with the oil and gas industry generally, fluctuating prices in crude oil and natural gas, changes in drilling activity, general global economic, political and business conditions, weather conditions, regulatory changes and availability of products, qualified personnel and manufacturing capacity and raw materials. If any of these uncertainties materialize, or if assumptions are incorrect actual results may vary materially from those expected. IROC relies on litigation protection for any forward looking statements.

The Common Shares of IROC have not and will not be registered on the United States Securities Act of 1933, as amended (the "United States Securities Act") or any state securities laws are not offered or sold in the United States or to any US person except in certain transactions exempt from the registration requirements of the United States Securities Act and applicable state securities laws.

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