Sikanni Services Ltd.
TSX VENTURE : SKI

Sikanni Services Ltd.

March 26, 2007 13:29 ET

Sikanni Services Ltd. Announces Final Terms of Subscription Receipt Offering

RED DEER, ALBERTA--(CCNMatthews - March 26, 2007) -

NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES OR TO UNITED STATES NEWSWIRE SERVICES.

SIKANNI SERVICES LTD. ("Sikanni" or the "Corporation") (TSX VENTURE:SKI), confirms the pricing and terms of its short form prospectus offering (the "Offering"). The Offering consists of 66,666,667 subscription receipts ("Subscription Receipts") at a price of $0.60 per Subscription Receipt for gross proceeds of $40,000,000. Each Subscription Receipt entitles the holder thereof to receive, without payment of additional consideration or further action, (i) one common share of the Corporation (a "Common Share") and (ii) one-half of one Common Share purchase warrant (a "Warrant"), which will be issuable upon completion of the acquisition (the "Acquisition") by the Corporation of all of the issued and outstanding shares of 1288070 Alberta Ltd. Each full Warrant will entitle the holder to acquire one Common Share at an exercise price of $0.80 per Common Share for a period of 18 months from closing of the Offering. Orion Securities Inc. is acting as lead agent of a syndicate of agents, which includes Blackmont Capital Inc., Westwind Partners Inc., and HSBC Securities (Canada) Inc. (collectively the "Agents").

In addition, the Corporation has agreed to grant to the Agents an over-allotment option (the "Over-Allotment Option") exercisable, in whole or in part, up to 30 days from the closing of the Offering, to purchase up to an additional 10,000,000 Subscription Receipts at a price per Subscription Receipt equal to the Offering price. If the Over-Allotment Option is exercised in full, total gross proceeds of the Offering will be $46,000,000.

The Corporation intends to file the short form prospectus on March 26, 2007.

Sikanni commenced operations as an oil and gas service company in 2005 with offices in Red Deer and Grande Cache. Sikanni's business is strategically focused on four segments of the oil and gas service sector: (i) oilfield waste management services; (ii) wheeled tank rentals; (iii) oilfield hauling and transportation; and (iv) mud distribution services.

This press release is not an offering of securities for sale in the United States. The Subscription Receipts, Common Shares, and Warrants have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or exemption from the registration requirements.

Forward-Looking Statements

Certain information included herein is forward-looking. Forward-looking statements include, without limitation, statements regarding the future financial position, business strategy, budgets, projected costs, capital expenditures, financial results, taxes and plans and objectives of or involving Sikanni. Many of these statements can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "anticipates", "estimates", "continues", or similar words and include but are not limited to, statements regarding the accretive effects of the acquisition and the anticipated results and expected benefits of the acquisition upon closing thereof. Sikanni believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties some of which are described in Sikanni's continuous disclosure documents. Such forward-looking statements necessarily involve known and unknown risks and uncertainties and other factors, which may cause Sikanni's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities including increases in taxes; changes in environmental and other regulations; and other factors, many of which are beyond the control of Sikanni. Any forward-looking statements are made as of the date hereof and Sikanni does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.

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

Contact Information

  • Sikanni Services Ltd.
    Rod MacDonald
    President & Chief Executive Officer
    (403) 348-2172
    Email: rmacdonald@sikanni.com
    or
    Sikanni Services Ltd.
    Thomas E. Lewis, CA
    Chief Financial Officer
    (403) 348-2172
    Email: tlewis@sikanni.com
    or
    Sikanni Services Ltd.
    208, 4711 - 51st Avenue
    Red Deer, Alberta, T4N 6H8
    (403) 348-2172
    (403) 348-0451 (FAX)
    Website: www.sikanni.com