Wenzel Downhole Tools Ltd.
TSX : WZL

Wenzel Downhole Tools Ltd.

April 02, 2009 16:30 ET

Wenzel Downhole Tools Ltd. Announces Normal Course Issuer Bid

CALGARY, ALBERTA--(Marketwire - April 2, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Wenzel Downhole Tools Ltd. ("Wenzel") (TSX:WZL) announced today that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by Wenzel of its intention to make a normal course issuer bid through the facilities of the TSX (the "NCIB").

Pursuant to the NCIB, Wenzel intends to purchase for cancellation up to 2,065,380 common shares ("Common Shares") in capital of Wenzel, being 10% of its public float of 20,653,801 Common Shares as of March 31, 2009 (or approximately 6.7% of its 30,644,524 issued and outstanding Common Shares as of March 31, 2009). Purchase of the Common Shares will be made on the open market through the facility of the TSX. The price which Wenzel will pay for any Common Shares purchased pursuant to the NCIB will be the prevailing market price of the Common Shares on the TSX at the time of such purchase. The actual number of Common Shares that may be purchased for cancellation and the timing of any such purchases will be determined by Wenzel, subject to the policies of the TSX. The NCIB will commence on April 3, 2009 and end no later than April 2, 2010. Any Common Shares purchased during the NCIB will be cancelled.

Between November 15, 2007 and November 14, 2008, Wenzel purchased an aggregate of 16,500 Common Shares at a weighted average price of $0.65 per Common Share. The average daily trading volume of the Common Shares on the TSX over the last six completed calendar months (the "ADTV") is 14,333 Common Shares. Consequently, under the policies of the TSX, Wenzel will have the right to purchase, during any one trading day, a maximum of 3,583 Common Shares, representing 25% of the ADTV. In addition, Wenzel may make, once per calendar week, a block purchase (as such term is defined in the TSX Company Manual) of Common Shares not directly or indirectly owned by insiders of Wenzel, in accordance with the policies of the TSX.

Wenzel has retained Fraser Mackenzie Limited, of Toronto, Ontario as its broker to conduct the NCIB on behalf of Wenzel.

The management of Wenzel believe that, from time to time, the market price of the Common Shares may not fully reflect the underlying value of the Common Shares in relation to the business of Wenzel and its future business prospects and that at such times the purchase of Common Shares by Wenzel would be in the best interests of all the shareholders of Wenzel. Such purchases will increase the proportionate interest of all remaining shareholders and may increase liquidity for those shareholders wishing to sell their Common Shares.

About Wenzel Downhole Tools Ltd.

Wenzel Downhole Tools Ltd. is a manufacturer, seller and renter of drilling tools used in oil and gas exploration. Wenzel's Canadian sales, manufacturing and servicing facilities are located in Edmonton, Alberta and its U.S. servicing facilities are located in Conroe, Texas and Casper, Wyoming. Wenzel's main corporate office is located in Calgary, Alberta and it has U.S. sales offices in Conroe, Casper and Oklahoma City, Oklahoma.

Forward-Looking Information

This news release may contain forward-looking information including opinions, assumptions, estimates and management's views and expectations. When used in this document, the words "believe," "may,", "will" and similar expressions are intended to be among the statements that identify forward-looking statements. Forward-looking statements are subject to a wide range of risks and uncertainties, and although Wenzel believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to the state of domestic capital markets, delays resulting from inability to obtain required regulatory approvals, changes in general economic conditions and other factors more fully described from time to time in the reports and filings made by Wenzel with securities regulatory authorities. Readers are cautioned not to place undue reliance on forward-looking statements, as no assurances can be given as to future results, levels of activity or achievements. Except as required by applicable securities laws, Wenzel does not undertake any obligation to publicly update or revise any forward-looking statements.

This news release does not constitute an offer for or solicitation of the Common Shares in any jurisdiction. Any such offer or solicitation will be made only by formal offer and only in those jurisdictions where Wenzel may legally do so.

Contact Information

  • Wenzel Downhole Tools Ltd.
    Harvie Andre
    President & CEO
    (403) 262-3050
    (403) 265-8154 (FAX)
    or
    Wenzel Downhole Tools Ltd.
    William Spence
    CFO
    (403) 262-3050
    (403) 265-8154 (FAX)
    or
    Wenzel Downhole Tools Ltd.
    Suite 1000, Elveden House
    717 - 7th Avenue S.W.
    Calgary, Alberta T2P 0Z3
    Website: www.downhole.com