Pure Energy Services Ltd.

Pure Energy Services Ltd.

February 06, 2006 08:22 ET

Pure Energy Services Ltd. Closes Initial Public Offering

CALGARY, ALBERTA--(CCNMatthews - Feb. 6, 2006) -


Pure Energy Services Ltd. (TSX:PSV) ("Pure Energy" or the "Corporation") is pleased to announce closing of the initial public offering of common shares (the "Offering") under which Pure Energy issued 3,125,000 Common Shares at $16.00 per Common Share for gross proceeds of $50 million. The Offering was completed through a syndicate of underwriters led by Peters & Co. Limited and including Sprott Securities Inc. and TD Securities Inc. The Common Shares began trading today on the Toronto Stock Exchange under the symbol "PSV".

Today Pure Energy will also be sending a letter of transmittal to each shareholder who acquired common shares prior to the Offering in order to allow such shareholders to exchange their existing share certificates for new public company share certificates representing the same shares. Additional copies of the letter of transmittal can also be obtained by shareholders who acquired common shares prior to the Offering by calling Computershare Trust Company of Canada at 1-800-564-6253.

Pure Energy is an oilfield services company that provides completion and drilling related services to oil and gas exploration and development entities in the Western Canadian Sedimentary Basin ("WCSB") and, through its wholly-owned subsidiary, Pure Energy Services (USA), Inc., in the Rocky Mountain region of the United States.

Pure Energy currently provides logging and perforating, production testing, multiline, drilling and pressure transient analysis services to customers in the WCSB, and also provides production testing services to customers in the Rocky Mountain region. Commencing in the first quarter of 2006 Pure Energy anticipates offering logging and perforating services in the Rocky Mountain region and also anticipates offering fracturing services in the Rocky Mountain region beginning in the second half of 2006.


Certain statements in this press release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate" and other similar terminology. These statements reflect the Corporation's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed below. Although the forward-looking statements contained in this press release are based upon what management of the Corporation believes are reasonable assumptions, the Corporation cannot provide assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and, subject to applicable securities laws, the Corporation assumes no obligation to update or revise them to reflect new events or circumstances.

In particular, this press release contains forward looking statements pertaining to expansion of the Corporation's services in the United States. The Corporation's actual results could differ materially from those anticipated in these forward looking statements as a result of the risk factors set forth below:

- general economic conditions in Canada and the United States;

- demand for oilfield services during drilling and completion of oil and natural gas wells;

- volatility in market prices for oil and natural gas and the effect of this volatility on the demand for oilfield services generally;

- competition;

- liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations;

- sourcing, pricing and availability of raw materials, consumables, component parts, equipment, suppliers, facilities, and skilled management, technical and field personnel;

- ability to integrate technological advances and match advances of competition;

- availability of capital;

- uncertainties in weather and temperature affecting the duration of the oilfield service periods and the activities that can be completed; and

- changes in legislation and the regulatory environment, including uncertainties with respect to implementing the Kyoto Protocol.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the common shares in any jurisdiction. The common shares have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

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