Press release from Marketwire
Strad Energy Services Announces 2011 Capital Expenditure Program and Exercise of IPO Over-Allotment Option
Wednesday, December 22, 2010
CALGARY, ALBERTA--(Marketwire - Dec. 22, 2010) -
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Strad Energy Services Ltd. ("Strad" or the "Company") (TSX:SDY) has approved its 2011 capital expenditure program of $66.5 million. Approximately 98% of the capital will be allocated to new organic opportunities, with an estimated $40 million allocated to Strad's US operations. The Company expects that about 40% of the new equipment will be built and in the field by the end of the first half of 2011. The program will be funded through use of the Company's initial public offering (the "Offering") proceeds received in November, and from operational cash flow.
"The continued demand for Strad's products and services, both in Canada and the US, support our largest capital expenditure program ever. We anticipate that our disciplined and targeted capital allocation program will continue to drive shareholder value," said Henry van der Sloot, Chief Executive Officer of Strad.
Strad is also pleased to announce the exercise of the over-allotment option granted to the Agents in connection with the recently completed Offering of 10,000,000 common shares ("Common Shares"). The Agents exercised the over-allotment option to purchase an additional 1,250,000 Common Shares at a price of $4.00 per Common Share. The exercise of the over-allotment option increased the aggregate gross proceeds of the Offering from $40,000,000 to $45,000,000. The net proceeds of the Offering will be used to fund the Company's 2011 capital expenditure program.
The Offering was made through a syndicate of investment dealers led by Raymond James Ltd. and including CIBC World Markets Inc., Macquarie Capital Markets Canada Ltd., Peters & Co. Limited, GMP Securities L.P., HSBC Securities (Canada) Inc. and Paradigm Capital Inc. (collectively, the "Agents").
About Strad Energy Services Ltd.
Strad is a diversified energy services company that focuses on providing oilfield solutions to the oil and natural gas industry in the Western Canadian Sedimentary Basin (WCSB) and throughout the United States. Strad operates with two core divisions: Drilling Services and Production Services. Drilling Services focuses on providing complete customer solutions in drilling-related oilfield equipment for producers active in unconventional resource plays. Production Services focuses on delivering a range of products and services to support the ongoing maintenance of natural gas and oil production.
When used in this news release, the words "will", "estimate" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the date that the statements are made, and the Company undertakes no obligation to update forward-looking statements if conditions or opinions should change, except as required by applicable law.
FOR FURTHER INFORMATION PLEASE CONTACT:
Henry van der Sloot Strad Energy Services Ltd. Chief Executive Officer (403) 249-7336 (403) 232-6901 (FAX) email@example.com
Andy Pernal Strad Energy Services Ltd. President (403) 775-9202 (403) 232-6901 (FAX) firstname.lastname@example.org
Byron Johnson Strad Energy Services Ltd. Chief Financial Officer (403) 775-9219 (403) 232-6901 (FAX) email@example.com
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