New West Energy Services Announces Equipment Acquisition, Debt Refinancing and New Revolving Line of Credit

CALGARY, ALBERTA--(Marketwired - March 10, 2017) - NEW WEST ENERGY SERVICES INC. (TSX VENTURE:NWE) today announced that it has entered into agreements with a U.S.-based organization (the "Lender") to acquire a diversified fleet of oil and gas fluid transportation equipment, refinance its current debt obligations and obtain a new revolving line of credit.

Gerry E. Kerkhoff, President and Chief Executive Officer of NWE stated, "New West has seen increasing revenues from its waste management, environmental and transportation services with near-full utilization of our equipment fleet. Our revenue base, however, has been limited by our fleet size and operating line of credit and, while the oil and gas industry is still struggling, our improving results and now larger fleet and increase in available operating capital make us optimistic for future growth. This transaction further diversifies our services into the completions and production sectors of the oil and gas industry and allows us to take on larger projects with corresponding higher revenues. We believe that this deal is strategically important for New West and will create increasing value for our shareholders as the conditions in the oil patch improve."

Pursuant to a term loan and security agreement, the Lender has advanced to NWE's wholly-owned operating subsidiary, Bearstone Environmental Solutions Inc., approximately $1.2 million (the "First Loan") to repay amounts owing under a term loan with Bearstone's previous lender, and approximately $4.8 million (the "Second Loan") to acquire a fleet of operating equipment, including various combinations of bulk fluid transport trailers, tractors and tank trucks capable of hauling water for fracking operations as well as drilling and production fluids.

The First Loan is for a term of five years at an interest rate of 7% per annum and the Second Loan is for a term of six years at an interest rate of 7.2 percent per annum.

Pursuant to a revolving term loan and security agreement, the Lender has also made available to Bearstone a revolving term credit facility of up to $3 million (the "Revolving Loan") based upon eligible accounts and other considerations and will be used to pay out an existing revolving credit facility with Bearstone's previous lender in the amount of approximately $620,000 and for general corporate purposes. Bearstone may draw down on, and repay, the loan from time to time as needed.

The Revolving Loan is for a term of three years and carries an interest rate on the unpaid principal balance at the prime rate in Canada (provided that such rate shall not be below 2.7%), plus 4.3% per annum.

The loan agreements include customary events of default. Upon the occurrence of an event of default, the amounts due by Bearstone under the loan agreements may be accelerated and the applicable interest rate increased. NWE has guaranteed the performance of all obligations of Bearstone under the loan agreements.

As part of the transaction, NWE has issued to the Lender a common share purchase warrant that will entitle the Lender to purchase up to six million common shares at a price of $0.05 per share for a period of three years. The warrants and underlying common shares are subject to a four-month hold period and the final approval of the TSX Venture Exchange.

About New West Energy Services

NWE management and operations personnel have over 20 years of experience in oil and gas services throughout western Canada. NWE is a recognized leader in comprehensive environmental services and waste management, including transportation and disposal, and operate through their main service centres in Beaverlodge and Medicine Hat, Alberta, and have their head office in Calgary, Alberta.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this news release may constitute "forward-looking information" within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements or industry results expressed or implied by such forward-looking information and financial outlook. Forward-looking information is identified by the use of terms and phrases such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will", "would", and similar terms and phrases, including references to assumptions. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations or future actions. Forward-looking information in this news release includes, without limitation, statements with respect to: the use of proceeds of the loans; the use of the acquired equipment; planned changes in NWE's business and revenues; the competitive environment in which NWE operates; and the assessment of future plans and operations. Actual events or results may differ materially.
The forward-looking information in this news release is based on assumptions which includes, but is not limited to: NWE realizing the expected benefits of the loans and acquired equipment; the general state of the economy and the oil and gas industry not worsening; NWE not losing any key personnel; NWE sustaining or increasing their level of revenues and EBITA; NWE growing its businesses long term and managing its growth; NWE complying with existing regulations and not becoming subject to more stringent regulations; and, NWE's insurance being sufficient to cover losses that may occur as a result of its operations. The forward-looking information in this news release is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. The factors which could cause results to differ from current expectations include, but are not limited to: failure to realize the expected benefits of the loans and acquired equipment; potential undisclosed liens associated with the acquired equipment; NWE's results being dependent upon the general state of the economy and the oil and gas industry; NWE being dependent on key personnel, the loss of which could harm its business; NWE may not be able to sustain or increase their revenues or EBITA; NWE may be unable to grow its business long term or to manage any growth; NWE may be unable to integrate the acquired equipment into its business; competition in NWE's markets may lead to reduced revenues and EBITA; NWE may fail to comply with existing regulations or become subject to more stringent regulations; NWE's insurance may be insufficient to cover losses that may occur as a result of NWE's operations; the market price of NWE's common shares will fluctuate; and, there is a possibility of dilution of existing holders of NWE's common shares due to future financings or acquisitions. Although NWE has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements in this news release, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Also, many of the factors are beyond the control of NWE. Accordingly, readers should not place undue reliance on the forward-looking information in this news release. The forward-looking information is made as of the date of this news release, and NWE does not assume any obligation to publicly update or revise such forward-looking information to reflect new information, subsequent or otherwise, except as may be required by applicable law. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement.