Press release from Marketwire
Strad Energy Services Announces Initiation of Disposition of Production Services Division
Thursday, December 01, 2011
Strad Energy Services Announces Initiation of Disposition of Production Services Division09:00 EST Thursday, December 01, 2011CALGARY, ALBERTA--(Marketwire - Dec. 1, 2011) -NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.Strad Energy Services Ltd. ("Strad") (TSX:SDY) today announced the initiation of a disposition process for the Production Services Division of the Company. "We believe that the disposition of the Production Services Division will allow management to focus exclusively on our very successful Drilling Services Division. Proceeds from a disposition of the lower margin Production Services Division would be incorporated into the Company's 2012 capital expenditure program. The company continues to see very strong demand for its rental fleet in both Canada and the U.S. We are confident that a reallocation of the proceeds will allow for more efficient and effective use of capital," said Andy Pernal, President of Strad. The Production Services Division provides mechanical services, electrical and instrumentation services, and packaging services for the oil and gas industry. The Division is heavily exposed to the natural gas segment of the industry. For the nine months ending September 30, 2011, the Production Services Division generated revenue of $49.3 million, and EBITDA of $3.2 million, excluding any corporate overhead allocation.Raymond James Ltd. has been engaged to assist in the disposition process.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. FOR FURTHER INFORMATION PLEASE CONTACT: Henry van der SlootStrad Energy Services Ltd.Chief Executive Officer(403) 249-7336(403) 232-6901 (FAX)firstname.lastname@example.orgORAndy PernalStrad Energy Services Ltd.President(403) 775-9202(403) 232-6901 (FAX)email@example.comThe TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.