Kodiak Energy Services Ltd.

Kodiak Energy Services Ltd.

August 16, 2005 17:19 ET

Kodiak Energy Services Appoints a Receiver and Provides Restructuring Update

CALGARY, ALBERTA--(CCNMatthews - Aug. 16, 2005) - Kodiak Energy Services Ltd. (TSX VENTURE:KES), an oilfield and environmental services company with operations in Alberta and British Columbia, announces that in conjunction with signing a non-binding letter of intent for the sale of its assets and rehiring of its employees, RSM Richter Inc., the monitor under Kodiak's prior CCAA protection, has been appointed as receiver-manager of Kodiak effective August 10, 2005. RSM Richter, in its efforts as receiver-manager, will complete the orderly sale and distribution of the assets of Kodiak. It is expected that the sale and distribution of the assets will result in a partial recovery for Kodiak creditors however, no distribution to Kodiak shareholders is anticipated. More information will be available as the receivership process continues.

For more information, please contact the Receiver, RSM Richter Inc. at (403) 233-8462.

Prior to the appointment of the receiver, Kodiak entered into a settlement agreement with 1119238 Alberta Ltd., Greg Wadsworth and Sandra Wadsworth (the "Wadsworth Group"), former control persons of Kodiak, which settlement agreement (the "Settlement Agreement") provided for the following: (i) the delivery to Kodiak for cancellation the aggregate 5,814,370 common shares and 3,300,483 Class A preferred shares of Kodiak; (ii) the assumption by the Wadsworth Group of the obligations of Kodiak under the Fishing Lodge Commitment, the Shop Lease, the Sponsorship Agreement and all other Assumed Liabilities, as such terms are defined in the Assets Purchase Agreement between Kodiak and the Wadsworth Group dated November 1, 2004; (iii) the provision by the Wadsworth Group of an unconditional release of Kodiak; (iv) the payment of $600,000 to Kodiak by the Wadsworth Group, and (v) the transfer of certain pieces of equipment from Kodiak to 1119238. The Settlement Agreement and its terms were approved by the Monitor and subsequently by the Court of Queen's Bench of Alberta.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • RSM Richter Inc.
    Mark Kearl
    Receiver-Manager of Kodiak
    (403) 233-8462