Parkland Energy Services Inc.

April 21, 2009 13:55 ET

Parkland Energy Services Inc.: Update on Operations

RED DEER, ALBERTA--(Marketwire - April 21, 2009) -

Current Operations

Parkland Energy Services Inc.'s (Parkland) (TSX VENTURE:PKE) wholly owned operation C and T Equipment Sales & Rentals Ltd. (C & T) had now been permanently shut down. The landlord, Hillman Holdings Inc., a company controlled by a director, Gordon Hillman, had previously exercised a distress warrant for unpaid rents. On March 31, 2009, a Quit Claim was exercised. The result of this claim is that title of all the assets of C & T have now passed to Hillman Holdings Inc. Once outstanding rents have been fully paid any excess funds remaining will be first used to repay secured creditors. There will not be enough funds to fully satisfy secured creditors, therefore there will be no funds left for unsecured creditors.

The only current operations of Parkland are industrial painting and coating. Effective April 20, 2009, Parkland will have a shop foreman in place, with the goal of starting up oilfield manufacturing. In order for the operation to continue Parkland must sign a lease with Hillman Holdings Inc. for use of the present facility. The new lease is to be signed in May 2009 with a lease term of 7 years commencing May 1, 2009. Parkland leased these same premises on a temporary basis for the month of April 2009.

Further to Parkland's press release dated October 22, 2008 the company has resigned a Letter of Intent for the acquisition of Ace Oilfield Acquisition Ltd. The purchase price has reduced from $3.3 million to $2.5 million due to the current downturn in the oil patch. The effective date is to be April 1, 2009 and is to close no later than October 31, 2009. Parkland continues to work with LINK Resource Partners to secure the necessary funding. The Board of Directors continues to look at alternatives which include; acquisitions, mergers, reverse take-overs and financings.

Controls re conflict of interest

As Gordon Hillman is a major shareholder and landlord via his company, Hillman Holdings Inc. and now holds all the former assets of C & T there may be a conflict of interest. To ensure transactions are at fair values all transactions, with Gordon Hillman or Hillman Holdings Inc., will be reviewed and approved by the board, with Mr. Hillman abstaining from voting. This includes Parkland's potential new lease with Hillman Holdings Inc. as well as any merger, acquisition or new financing.

Current Directors and Officers of Parkland are:

Ayaz Kara - Director

John Ponto - Director

Gordon Hillman - Director and Acting President and CEO

Allan Slobodian - CFO

Parkland is a company based in Red Deer, Alberta that currently has an industrial paint and sandblasting operation. The Common shares are listed on the TSX Venture Exchange and trade under the symbol "PKE".

TSX Venture Exchange nor its Regulation Service 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

  • Parkland Energy Services Inc.
    Allan Slobodian
    Chief Financial Officer
    (403) 346-8119
    (403) 346-4605 (FAX)