Share buybackEDMONTON, AB, June 23 /CNW/ - Pe Ben Oilfield Services Ltd. ("Pe Ben")
today announced it has received regulatory approval from the Toronto Stock
Exchange ("TSX") to make a normal course issuer bid (the "Bid") to purchase,
during the 12-month period for which purchases are permitted, up to 155,119
common shares representing approximately 5% of shares currently issued and
outstanding, which as at June 11, 2004 equal 3,102,396. Under applicable TSX
rules, no more than 62,048 common shares, representing 2% of the issued and
outstanding shares, may be purchased during any 30-day period. All shares
purchased under the Bid will be cancelled.
The Bid is expected to commence on June 26, 2004 and will terminate on
June 25, 2005 or such earlier time as Pe Ben completes its purchases. The
purchases under the Bid will be effected through the facilities of the TSX by
open market purchases at the then current market price of the common shares of
Pe Ben as traded on the TSX. Pursuant to its previous issuer bid, Pe Ben
purchased 67,600 common shares.
The directors of Pe Ben are of the opinion that the trading price of the
common shares does not appropriately reflect the fair market value of these
shares, Pe Ben's financial position and the current value of, and prospects
for, the business. The directors of Pe Ben further believe that the buy-back
program will represent an excellent opportunity to use excess working capital
to enhance shareholder value. The directors also believe that the on-going
purchase price for cancellation of common shares would assist in off-setting
the dilutive effect of share issuances on existing shareholders arising from
the issuance of common shares under Pe Ben's stock ownership and stock option
plans.
Pe Ben, through its wholly owned subsidiaries, provides a broad range of
specialized services directly to the oil and gas industry. These services
include the contract transportation, handling and storage of oilfield tubular
products and supplies, the hauling, stringing and stockpiling of large
diameter oil and gas transmission pipe, and the transportation of bulk
petroleum products.
THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE
INFORMATION CONTAINED HEREIN.