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Press release from Marketwire

Savanna Energy Services Corp. Announces Private Offering and Pricing of Senior Notes

Thursday, May 19, 2011

Savanna Energy Services Corp. Announces Private Offering and Pricing of Senior Notes17:00 EDT Thursday, May 19, 2011CALGARY, ALBERTA--(Marketwire - May 19, 2011) - Savanna Energy Services Corp. ("Savanna" or the "Corporation") (TSX:SVY) announced today that it has priced an offering of $125 million aggregate principal amount of 7.0% senior unsecured notes (the "Senior Notes") due May 25, 2018 pursuant to a private placement in Canada. The Senior Notes were priced at par and the Corporation expects to close the offering on May 25, 2011. Savanna intends to use the net proceeds from the offering of Senior Notes and available cash to repay its outstanding indebtedness under its senior secured revolving credit facilities. TD Securities Inc. and RBC Capital Markets are acting as co-lead underwriters and joint bookrunners in a syndicate which also includes Scotia Capital Inc. in the offering of the Senior Notes. The Senior Notes have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any offer or sale of the Senior Notes in any state, or jurisdiction in which such offer, solicitation, or sale would be unlawful. In conjunction with the anticipated completion of the offering of Senior Notes, Savanna has also received commitments from its existing commercial lending syndicate to restructure its senior secured revolving credit facilities to reduce the available facility to $135 million from the current level of $175 million. This restructuring is contingent upon successful issuance of the Senior Notes.As of today's date Savanna has approximately $134 million outstanding on its existing senior secured revolving credit facilities.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) 503-9990(403) 267-6749 (FAX)ORDarcy DraudsonSavanna Energy Services Corp.Vice President, Finance and CFO(403) 503-9990(403) 267-6749 (FAX)www.savannaenergy.com