CALGARY, ALBERTA–(Marketwired – Sept. 5, 2014) – Canadian Energy Services Technology Corp. (“CES” or the “Company”) (TSX:CEU)(OTCQX:CESDF) is pleased to announce that it has entered into a new credit facility with a syndicate of lenders led by the Bank of Nova Scotia as Sole Lead Arranger and Sole Administrative Agent. The new credit facility represents an increase to the Company’s credit facilities to $200 million from the previous $150 million facility. The new credit facility has a term to maturity of three years, maturing on September 30, 2017 and may be extended by one year upon the agreement of the lenders and CES. In addition, subject to certain terms and conditions, the Company may increase its new credit facility by $100 million to a maximum borrowing of $300 million. The terms in the new credit facility relating to pricing margins on drawn amounts and financial covenants are consistent with the terms of the Company’s previous credit facility.
CES is also pleased to announce that it has closed the previously announced acquisition of Southwest Treating Products, LLC. (“Southwest“). The acquisition of Southwest will accelerate the expansion of the Company’s US production and specialty chemicals operations into the west Texas Permian Basin and the Eagle Ford shale in south Texas through its wholly owned subsidiary Jacam Chemicals 2013, LLC. Established in 2006, and headquartered in Sonora, Texas, Southwest is a west Texas based private production and specialty chemical company that provides production and specialty chemical solutions for a number of leading oil and natural gas companies.
About Canadian Energy Services Technology Corp.
CES is a leading provider of technically advanced consumable chemical solutions throughout the life-cycle of the oilfield. This includes solutions at the drill-bit, at the point of completion and stimulation, at the wellhead and pump-jack, and finally through to the pipeline and midstream market. CES’ business model requires limited re-investment capital to grow. As a result, CES has been able to capitalize on the growing market demand for drilling fluids and production and specialty chemicals in North America while generating free cash flow. CES returns much of this free cash flow back to shareholders through its monthly dividend. Additional information about CES is available at www.sedar.com or on the Company’s website at www.CanadianEnergyServices.com.
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This news release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes statements with respect to the ability of the Company to increase its borrowing base under the new credit facility, the Company’s plans to integrate Southwest with the operations of CES and management of CES’ expectation of the effect of the Southwest acquisitionon the expansion of the Company’s operations in the west Texas Permian Basis and the Eagle Ford shale. Material assumptions and factors that could cause actual results to differ materially from such forward-looking information include compliance with the terms and conditions of the new credit facility by all parties thereto, market and industry conditions affecting CES’ operations, the successful integration of Southwest’s employees and customers with CES, the ability for CES to sell Southwest’s services and products into the United States production and specialty chemical markets. Although the Company believes that the material assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.