/NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES NEWS WIRE SERVICES./
CALGARY, Dec. 13, 2017 /CNW/ - (TSXV: CWC) CWC Energy
Services Corp. ("CWC" or the "Company") is pleased to
announce that it has completed its previously announced rights
offering which expired on December 11,
2017 (the "Rights Offering"). The Rights
Offering was fully subscribed and generated approximately
$26.0 million in gross proceeds.
The Company issued an aggregate of 130,148,781 common shares
("Common Shares") (102,026,683 Common Shares pursuant
to the basic subscription privilege and 28,122,098 Common Shares
pursuant to the additional subscription privilege). Of the
aggregate 130,148,781 Common Shares issued, insiders of CWC as a
group, including directors and officers of the Company as well as
Brookfield Capital Partners Ltd. and it's affiliates
("Brookfield"), the
Company's significant shareholder, subscribed for an aggregate of
100,490,663 Common Shares pursuant to the basic subscription
privilege and an aggregate of 28,040,990 Common Shares pursuant to
the additional subscription privilege and all other persons as a
group subscribed for an aggregate of 1,536,020 Common Shares
pursuant to the basic subscription privilege and an aggregate of
81,108 Common Shares pursuant to the additional subscription
privilege. No fees or commissions were paid in connection
with the Rights Offering.
After completion of the Rights Offering, there are approximately
520,595,123 Common Shares outstanding. Brookfield now has ownership and control over
406,463,423 outstanding Common Shares, representing approximately
78.1% of the issued and outstanding Common Shares.
CWC is also pleased to announce that the Board of Directors has
approved a 2018 capital expenditure budget of $12.7 million, $7.2
million of which is growth capital to improve certain
drilling and coil tubing equipment while the remaining $5.5 million is maintenance and infrastructure
capital related to recertifications, additions and upgrades to
field equipment for the drilling rigs, service rigs, swabbing rigs
and coil tubing divisions as well as information technology
infrastructure. The increase to the 2018 capital expenditures
budget compared to the 2017 capital expenditure of $6.7 million is consistent with CWC's commitment
to safety and operational efficiency with high quality and well
maintained equipment. CWC intends to finance its 2018 capital
expenditures budget from operating cash flows.
The Company continues to be committed to disciplined fiscal
management and pursuit of opportunities driven by the current
industry environment. Management continues to evaluate and assess
merger and acquisition opportunities of oilfield service businesses
and assets that are best-in-class that would have the potential to
increase shareholder value.
This news release shall not constitute an offer to sell or
the solicitation of an offer to buy, nor shall there be any sale of
securities in the United States or
in any province, state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such province, state
or jurisdiction. The securities referenced herein may not be
offered or sold in the United
States except in transaction exempt from or not subject to
the registration requirements of the United States Securities
Act of 1933, as amended, and applicable state securities
laws.
About CWC Energy Services Corp.
CWC Energy Services Corp. is a premier contract drilling and
well servicing company operating in the Western Canadian
Sedimentary Basin with a complementary suite of oilfield services
including drilling rigs, service rigs, swabbing rigs and coil
tubing. The Company's corporate office is located in Calgary, Alberta, with operational locations
in Nisku, Grande Prairie, Slave Lake, Sylvan
Lake, Red Deer,
Drayton Valley, Lloydminster, Provost, and Brooks,
Alberta. The Company's shares trade on the TSX Venture
Exchange under the symbol "CWC".
Duncan T. Au, CPA,
CA,
CFA
|
Stuart King, CPA,
CA
|
President & Chief
Executive
Officer
|
Chief Financial
Officer
|
READER ADVISORY - Neither 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.
Forward-Looking Information and Statements
This news release contains certain forward-looking
information and statements within the meaning of applicable
Canadian securities legislation. Certain statements contained
in this news release may contain such words as "anticipate",
"could", "continue", "should", "seek", "may", "intend", "likely",
"plan", "estimate", "believe", "expect", "will", "objective",
"ongoing", "project", "view" and similar expressions are intended
to identify forward-looking information or statements. In
particular, this news release contains forward-looking statements
involving the intended capital expenditures to be made in 2018 and
intentions with respect to financing such expenditures.
Although the Company believes that the expectations and assumptions
on which such forward-looking information and statements are based
are reasonable, undue reliance should not be placed on the
forward-looking information and statements because the Company can
give no assurances that they will prove to be correct. Since
forward-looking information and statements address future events
and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially
from those currently anticipated due to a number of factors and
risks. These include, but are not limited to, the risks
associated with the drilling and oilfield services sector (i.e.
demand, pricing and terms for oilfield drilling and services;
current and expected oil and gas prices; exploration and
development costs and delays; reserves discovery and decline rates;
pipeline and transportation capacity; weather, health, safety and
environmental risks), integration of acquisitions, competition, and
uncertainties resulting from potential delays or changes in plans
with respect to acquisitions, development projects or capital
expenditures and changes in legislation, including but not limited
to tax laws, royalties and environmental regulations, stock market
volatility and the inability to access sufficient capital from
external and internal sources. Accordingly, readers should
not place undue reliance on the forward-looking statements.
Readers are cautioned that the foregoing list of factors is not
exhaustive. Additional information on these and other factors
that could affect the Company's financial results are included in
reports on file with applicable securities regulatory authorities
and may be accessed through SEDAR at
www.sedar.com. The forward-looking information and
statements contained in this news release are made as of the date
hereof and the Company undertakes no obligation to update publicly
or revise any forward-looking information or statements, whether as
a result of new information, future events or otherwise, unless so
required by applicable securities laws. Any forward-looking
statements made previously may be inaccurate now.
SOURCE CWC Energy Services Corp.