Sikanni Services Ltd.

Sikanni Services Ltd.

April 10, 2007 10:28 ET

Sikanni Services Provides Update on Corporate Activities

RED DEER, ALBERTA--(CCNMatthews - April 10, 2007) -


SIKANNI SERVICES LTD. ("Sikanni" or the "Company") (TSX VENTURE:SKI) - Rod MacDonald, President of Sikanni, is pleased to provide the following operational updates:

Waste Management

The Company's waste division, Sikanni Waste Management Ltd., has acquired four highly suitable well bores in key market areas which it intends to develop into fully operational oilfield waste management facilities. Sikanni has engaged Stantec Engineering to assist with facility design, permitting and other required regulatory reviews. Site work has now commenced at two of the locations and the Company anticipates that it will commission the first two waste management facilities prior to December 31, 2007.

Oilfield Transportation Services

Sikanni recently closed the previously announced acquisition of the Twilight Oilfield Hauling Group of companies. This strategic acquisition increases the Company's trucking fleet to fifty trucks and over eighty trailers. The Twilight acquisition expands Sikanni's operational base in Grand Cache to include the Grand Prairie region and increases its services offerings of general oilfield hauling and drilling mud distribution to include drilling rig relocation and transportation services.

The Company is continuing to evaluate further growth opportunities in the Foothills region of Northeastern Alberta and Northwestern B.C.

Tank Rentals

The Company took delivery of its 100th wheeled rig tank during January 2007. The wheeled tank system has proven to provide significant cost savings to the Company's E&P customers. Over 40% of the current fleet has been contracted to a major Oil Company on a multi-year 250 day per year utilization basis.

Financial Position

The Company recently announced the closing of a $40 million prospectus financing, of which approximately $20 million of these proceeds were used to finalize the Twilight acquisition. The remaining funds, net of costs, will be used by the Company for the development of new business opportunities and for general working capital purposes.

The Company 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 hauling and transportation; (ii) wheeled tank rentals; (iii) oilfield waste management; and (iv) mud distribution services.

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, capital expenditures, financial results, 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
    Sikanni Services Ltd.
    Thomas E. Lewis, CA
    Chief Financial Officer
    (403) 348-2172
    Sikanni Services Ltd.
    4757 - 60 Street, Red Deer, Alberta, T4N 6H8