Press release from Marketwire
Savanna Energy Services Corp. to Acquire Performance Services Ltd.
Monday, April 25, 2011
Savanna Energy Services Corp. to Acquire Performance Services Ltd.17:50 EDT Monday, April 25, 2011CALGARY, ALBERTA--(Marketwire - April 25, 2011) - Savanna Energy Services Corp. (TSX:SVY) ("Savanna") announced today that it has entered into a definitive arrangement agreement whereby Savanna will acquire all of the outstanding shares of Performance Services Ltd. ("Performance") for a total consideration of 3,559,647 common shares of Savanna. Based on the volume weighted average price over the last 5 trading days, the total purchase price is approximately $35,276,000. Performance is a well servicing company operating 16 mobile freestanding service rigs throughout Alberta, British Columbia and Saskatchewan. Performance has no debt and will have approximately $2,000,000 of working capital at the closing date of the transaction. The transaction will be effected by means of a court approved plan of arrangement. The board of directors of Performance has considered the plan of arrangement and has determined that it is in the best interests of Performance and its shareholders. Completion of the plan of arrangement is subject to regulatory approval, court approval, the approval of the shareholders of Performance and to other customary conditions. Shareholders of Performance will be asked to approve the transaction at a special meeting of Performance shareholders expected to be held on or about May 31, 2011, but in any event no later than June 29, 2011. The transaction will require the affirmative approval by holders of two-thirds of the Performance shares that vote in person or by proxy at such meeting. Performance is expected to mail a management proxy circular to its shareholders on or about May 9, 2011 in respect of the meeting. This circular will contain important information regarding this proposed transaction.Savanna is proud to add quality service rig equipment and experienced personnel from Performance to our established well service division. Our combined company's operational synergies will not only position us to capitalize on future organic growth, but we will also be well-suited to make future complementary acquisitions based on the new look of our service division.These 16 service rigs will take our total service rig count to 84, which are located throughout Canada, the U.S., and Australia. We are confident this acquisition will continue to attract experienced, quality personnel to work for one of the largest service rig operators in western Canada.Subject to receipt of all required approvals, the transaction is expected to be completed in early June, 2011.Savanna is a Canadian-based drilling and well servicing provider with operations in Canada, the United States and Australia, focused on providing fit-for-purpose equipment and technologies.Cautionary Statement Regarding Forward-Looking Information and StatementsCertain statements and information contained in this press release may constitute forward-looking information within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on certain assumptions and analysis made by Savanna in light of its experience as well as other factors it believes are appropriate in the circumstances. However, whether actual results or events will conform to Savanna's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and events to differ materially from Savanna's expectations. Consequently, all of the forward-looking information and statements made in this press release are qualified by this cautionary statement and there can be no assurance that the actual results or events anticipated by Savanna will be realized or, even if substantially realized, that they will have the expected effects on Savanna or its business or operations. Except as may be required by law, Savanna assumes no obligation to update publicly any such forward looking information and statements, whether as a result of new information, future events, or otherwise. FOR FURTHER INFORMATION PLEASE CONTACT: Ken MullenSavanna Energy Services Corp.President and CEO(403) 503-9990ORDwayne LaMontagneSavanna Energy Services Corp.Executive Vice President & Chief Development Officer(403) 503-9990(403) 267-6749 (FAX)www.savannaenergy.com