Press release from Marketwire
Strad Energy Services Announces 2012 Capital Expenditure Program and Normal Course Issuer Bid
Tuesday, December 20, 2011
Strad Energy Services Announces 2012 Capital Expenditure Program and Normal Course Issuer Bid09:15 EST Tuesday, December 20, 2011CALGARY, ALBERTA--(Marketwire - Dec. 20, 2011) -NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.Strad Energy Services Ltd ("Strad") (TSX:SDY) has approved its 2012 capital expenditure program of $72 million. Substantially all of the funds will be used to develop new organic opportunities, with an estimated 50% of the funds allocated to Strad's U.S. operations. Less than 5% of the funds are projected to be used for maintenance capital. The program will be funded through operational cash flow and existing credit facilities."The Company continues to experience excellent demand for its equipment in both Canada and the U.S. Our disciplined capital allocation model will continue to be used to high-grade opportunities, and to ensure a measured approached is taken in this volatile macro environment, "said Andy Pernal, President of Strad.In addition Strad announced that the Toronto Stock Exchange (the "TSX") has accepted its notice to make a normal course issuer bid (the "Bid") to purchase, from time to time, as it considers advisable, up to 1,862,319 of its 37,246,384 issued and outstanding common shares (as of December 15, 2011) on the open market through the facilities of the TSX, which represents 5% of the outstanding common shares. In accordance with the rules of the TSX governing normal course issuer bids, the total number of shares the Company is permitted to purchase is subject to a daily purchase limit of 10,610 common shares, which represents 25% of the average daily trading volume of Strad common shares on the TSX calculated for the six month period ended November 30, 2011 in accordance with the TSX rules; provided, however, that Strad may make one block purchase per calendar week which exceeds the daily repurchase restriction subject to the maximum annual limit of 5% of the issued and outstanding shares. The price that the Company will pay for any common shares acquired under the Bid will be the prevailing market price on the TSX at the time of such purchase. Common shares acquired by Strad under the Bid will be cancelled. The Bid will commence on December 22, 2011 and will terminate on December 21, 2012 or such earlier time as the Bid is completed or terminated at the option of the Company.Strad believes that from time to time the market price of the Strad common shares may not reflect their underlying value and that, at such times, the purchase of common shares for cancellation may increase the proportionate interest of, and may be advantageous to all remaining shareholders. During the past twelve months, Strad has not purchased any of its common shares.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.