CALGARY, ALBERTA--(Marketwired - May 15, 2014) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES
Great Prairie Energy Services Inc. (TSX VENTURE:GPE) ("Great Prairie" or the "Company") is pleased to announce that it has completed its previously announced asset purchase from Calmena Energy Services Operating Limited Partnership and Calmena Energy Services Inc. (collectively, the "Vendors") of certain oilfied services business and related operations in Alberta, Saskatchewan and British Columbia (the "Purchased Business") for a consideration of $10,000,000 through its wholly owned subsidiary, Great Prairie Oilfield Services Inc. (the "Transaction").
The Purchased Business includes oilfield rental, hauling and frac fluid services and management of the Company advises that the Purchased Business will complement Great Prairie's existing operations. The operations of the Purchased Business are located in Drumheller, Sundre and Valleyview, Alberta, and Kindersley, Saskatchewan. Great Prairie will continue to operate the facilities of the Purchased Business at the above locations. The Purchased Business will operate under the Company's wholly owned subsidiary, Great Prairie Oilfield Services Inc.
The purchase price of the Transaction was funded by way of existing credit facilities and working capital. The purchase price represents a multiple of approximately 2.9x 2013 EBITDA of the business being acquired under the Transaction. In association with the Transaction, Great Prairie has increased the term component of its credit facility to $18 million. Great Prairie's operating line remains unchanged at $2 million.
Great Prairie is also pleased to advise that all four senior managers responsible for operations of the Business at Sundre, Drumheller, and Valleyview have entered into management agreements with Great Prairie and will continue in their respective roles in connection with the acquired Business. Management believes employment offers extended by Great Prairie will be accepted by all field and office staff involved in the Purchased Business.
Great Prairie is a Calgary headquartered oilfield rental and hauling company focussed on servicing the oil and gas sector in Saskatchewan and Alberta.
Forward Looking Statements and Reader Advisory
This news release contains forward-looking statements relating to the anticipated acceptance of the employment offers extended by the Company by all field and office staff involved in the Purchased Business, planned future operations of Great Prairie. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things: the risk that the anticipated benefits from the Transaction is not realized, Great Prairie's ability to obtain future financings to fund its operations, the state of the economy in general and capital markets in particular and investor interest in the business and future prospects of Great Prairie.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, Great Prairie disclaim any intention and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, Great Prairie undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.
Readers should note that EBITDA is a non-GAAP financial measures and do not have any standardized meaning under GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Great Prairie believes that EBITDA is a useful supplemental measure, which provide an indication of the results generated by the Great Prairie's primary business activities prior to consideration of how those activities are financed, amortized or taxed. Readers are cautioned, however, that EBITDA should not be construed as an alternative to comprehensive income (loss) determined in accordance with GAAP as an indicator of Great Prairie's financial performance.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.