Ridgeline Energy Services Inc.

Ridgeline Energy Services Inc.

December 13, 2011 07:36 ET

Ridgeline Energy Services Inc. to Raise $4,400,040 Through a Bought-Deal Private Placement Offering

CALGARY, ALBERTA--(Marketwire - Dec. 13, 2011) -


Ridgeline Energy Services Inc. (TSX VENTURE:RLE)(OTCQX:RGDEF) ("Ridgeline" or the "Company") today announced that it has entered into an agreement with a syndicate of underwriters led by Mackie Research Capital Corporation and including National Bank Financial Inc. (the "Underwriters") whereby the Underwriters have agreed to purchase, on a bought-deal basis, 7,333,400 common shares of the Company (the "Common Shares") at a price of $0.60 (the "Offering Price") per Common Share, for gross proceeds to the Company of approximately $4,400,040 (the "Offering").

The Company has granted the Underwriters the option, but not the obligation, exercisable at any time up to and including 48 hours prior to the closing of the Offering (the "Closing") to increase the size of the Offering by up to 15% (the "Underwriters' Option").

The Common Shares will be offered by way of private placement exemptions from the applicable prospectus requirements in such provinces of Canada and otherwise in those jurisdictions where the Offering can be lawfully be made including the US under applicable private placement exemptions. The securities to be issued under the Offering will have a hold period of four months and one day from Closing.

The Offering is scheduled to close on or about the week of December 26th, 2011 or as otherwise determined by the Company and Underwriters and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

The proceeds received by the Company from the Offering will be used for commercialization, development, and working capital.

In consideration for their services, the Underwriters will receive a cash commission of 7.0% of the gross proceeds of the Offering. In addition, the Underwriters will receive non-transferable common share purchase warrants (the "Compensation Options") exercisable at any time up to 24 months from Closing to purchase Common Shares of the Company in an amount equal to 7.0% of the number of Common Shares sold pursuant to the Offering, at the Offering Price, including any Common Shares sold pursuant to the exercise of the Underwriters' Option.

This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, "U.S. persons," as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.

About Ridgeline Energy Services Inc.

Ridgeline Energy Services Inc. is an energy services technology and consulting company focused on waste management in the oil and gas industry. Through its subsidiary Ridgeline Water Inc., the Company is applying proprietary technology to efficiently and cost effectively treat the large volumes of contaminated water generated by oil and gas production. The Company is working with energy majors in the application of its technology for the treatment of produced and hydraulic fracturing water, and oil sands process water for recycle and reuse. As well the company is utilising its technology in the testing and treatment of commercial and industrial waste water applications. Through its environmental consulting and remediation subsidiaries, Ridgeline Environment Inc. and Ridgeline GreenFill Inc., the Company has built a reputation as an established provider of environmental services to North America's oil and gas industry. The Company trades on the TSX Venture Exchange under the symbol "RLE" and the OTCQX as "RGDEF". Additional information is available on the Company's website at: www.ridgelinecanada.com.

For a video on hydraulic fracturing and our proprietary water treatment technology please follow this link: http://ridgelinecanada.com/fracvideo.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."


Tony Ker, CEO

Contact Information