Winalta Inc.

Winalta Inc.

November 17, 2006 19:21 ET

Winalta Inc. Acquires Sundance Oilfield Rentals Ltd.

EDMONTON, ALBERTA--(CCNMatthews - Nov. 17, 2006) - Winalta Inc. (TSX VENTURE:WTA.A) ("Winalta") announced today the signing of an agreement to acquire all of the outstanding shares of Jeffman Enterprises Ltd. operating as Sundance Oilfield Rentals ("Sundance"), a private family-owned corporation based in Edmonton, Alberta which has been in operation since 1987. Jeff Mangion is the founder and operator of this primarily oil and gas service business that provides rental and leasing of wellsite units and camps. Sundance's assets consist of a relatively new fleet of 21 wellsite trailers and 3 camp units. Winalta has entered into an agreement to retain Jeff Mangion to assist in the growth of this sector for Winalta.

"Winalta's wholly owned subsidiary, Vanguard Inc. in North Battleford, Saskatchewan is ideally suited to expand on its manufacturing of wheeled wellsite units to encompass skidded units and camps. Vanguard will be building these units for Sundance as well as for sale to theindustry. Jeff, as an innovator in manufacturing and design, will be invaluable to Vanguard'sexpanding production of premium oilfield wellsite and camp units" says Frank Dixon, Presidentand CEO. Vanguard recently discontinued the manufacturing of recreational vehicles in lightof reduced profitability due to a strengthened Canadian dollar.

The $5.9 million purchase price consists of $4.2 million in cash, $700,000 of Winalta commonshares at $2.71 per share and $1 million in assumed debt. The Winalta common shares will beheld in escrow and released after a four month period.

Winalta Inc. is a producer of manufactured CSA certified homes, modular homes, site-builthomes, industrial projects and recreational homes. In addition, through its subsidiary,Vanguard Inc., the Corporation designs, manufactures and wholesales industrial oilfield units.

Winalta Inc. shares trade on the TSX Venture Exchange under the symbol "WTA.A".

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

Contact Information

  • Winalta Inc.
    Frank Dixon
    President and CEO
    (780) 960-6900