New West Energy Services Inc.

December 15, 2008 06:00 ET

New West Energy Services Inc. Announces Amended Acquisition Agreement in Respect of Terralog Technologies Inc.

CALGARY, ALBERTA--(Marketwire - Dec. 15, 2008) -


New West Energy Services Inc. (TSX VENTURE:NWE) ("New West") announces it has executed an extension to close its previously announced acquisition of Terralog Technologies Inc. ("TTI"). Pursuant to an amended acquisition agreement (the "Amended Agreement") New West proposes to acquire all the outstanding shares of TTI and TTI proposes to become the sole shareholder of PT Terralog Teknologi Indonesia (the "Acquisition").

The terms of the original acquisition agreement are set out in New West's press release of October 2, 2008. The Amended Agreement contains a number of revised terms including: (i) closing is scheduled to occur on or before March 12, 2009; (ii) a portion of the purchase price is now payable in U.S. dollars; and (iii) the terms of the financing (the "Private Placement") have been broadened to allow for the issue of debt, if deemed advisable.

The Acquisition remains subject to a number of conditions, including completion of the Private Placement, receipt of all required third party and regulatory approvals and other customary conditions.

The text of the Amended Agreement will be available for review at under New West's profile on or about December 16, 2008.

TTI Announces New Contract

In addition, TTI is pleased to announce it has been awarded a contract to conduct a deep well disposal technical feasibility study for the offshore production operations of ZADCO (part of the Abu Dhabi National Oil Company group).

About TTI and PT TTI

TTI is a private company with its head office located in Calgary, Alberta. It is a leading international service company that specializes in petroleum geo-mechanics and deep well disposal waste management using slurry fracture injection technology. PT TTI, has its head office in Jakarta, Indonesia.

TTI has been in operation for approximately 8 years. It has gained international prominence working through PT TTI for the past 4 years in connection with a long term contract disposing of production wastes at the Duri oilfield in Sumatra, Indonesia.

TTI is also currently working under contract in Bergen, Norway providing technical and engineering support for 5 offshore CRI disposal wells in the North Sea.

TTI has made significant business development inroads with other international concerns that TTI anticipates will start field operations in the future. While these projects are in various stages of discussions, it must be noted that final approvals have not yet been given for these projects, and operating agreements have not been negotiated for these projects.

In addition, TTI is involved in the development of Carbon Capture and Storage CO2 technology.

About New West

New West operates in the oil field service industry in Canada. New West sells chemicals and provides engineering services to oil and gas exploration and production companies.

Cautionary Statements Regarding Forward-Looking Information

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking statements or information. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside New West's control, which could cause actual results to differ materially from such statements. Forward-looking information includes, but is not limited to, statements regarding the proposed Acquisition, including expected combined financial and operating results; the expected amount and timing of operating synergies; whether and when the transactions contemplated by the Agreement will be consummated; and expectations, beliefs, goals, objectives, information and statements about possible future events. Forward-looking information is based on current expectations, estimates and assumptions that involve a number of risks which could cause actual results to vary and in some instances to differ materially from those anticipated by New West and described in the forward-looking information contained in this press release. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are the failure to realize anticipated synergies; the result of the review of the proposed Acquisition by various regulatory agencies and any conditions imposed in connection with consummation of the proposed Acquisition; failure to receive the approval of the proposed Acquisition by the shareholders of New West and satisfaction of various other conditions to the closing of the Acquisition contemplated by the Agreement. Readers are cautioned not to place undue reliance on such forward-looking information. No assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur or, if any of them do so, what benefits New West will derive therefrom.

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

Contact Information

  • New West Energy Services Inc.
    Richard J. Collens
    Chief Financial Officer
    (403) 303-2665
    (403) 263-7558 (FAX)