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Press release from Marketwire

Savanna Energy Services Corp. Announces Completion of Private Offering and Restructuring of Credit Facilities

Wednesday, May 25, 2011

Savanna Energy Services Corp. Announces Completion of Private Offering and Restructuring of Credit Facilities14:49 EDT Wednesday, May 25, 2011CALGARY, ALBERTA--(Marketwire - May 25, 2011) - Savanna Energy Services Corp. ("Savanna" or the "Corporation") (TSX:SVY) announced today that it has now completed its offering of $125 million aggregate principal amount of 7.00% senior unsecured notes (the "Senior Notes") due May 25, 2018 pursuant to a private placement in Canada, which was previously announced on May 19, 2011. The Senior Notes were priced at par. 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 acted as co-lead underwriters and joint bookrunners in a syndicate which also included 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 were not offered or sold in the United States. In conjunction with the offering of Senior Notes, Savanna has also completed the restructuring of its senior secured revolving credit facilities which has reduced the available facility to $135 million from the former level of $175 million. The amended facility has a maturity date of May 25, 2015 and is extendible annually. 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