Press release from CNW Group
Cathedral Energy Services Ltd. to proceed with normal course issuer bid
Thursday, July 04, 2013
Cathedral Energy Services Ltd. to proceed with normal course issuer bid08:00 EDT Thursday, July 04, 2013
/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
CALGARY, July 4, 2013 /CNW/ - Cathedral Energy Services Ltd. (the "Company" or "Cathedral" / TSX: CET) announces that its previous normal course issuer bid (the "Previous Bid") ended on June 19, 2013 and that the Company has obtained approval from the Toronto Stock Exchange ("TSX") to proceed with a new normal course issuer bid (the "Bid") whereby Cathedral may purchase for cancellation up to a total of 2,182,711 common shares representing approximately 10% of the public float of the Company's common shares (as defined in the policies of the TSX). As at July 2, 2013, Cathedral had 35,824,877 common shares outstanding. Daily repurchases will be limited to 28,723 common shares, other than block purchase exceptions. It is expected that the Bid will commence on July 8, 2013 and terminate on July 7, 2014. All acquisitions of common shares by Cathedral pursuant to the Bid will be made through the facilities of the Toronto Stock Exchange or alternative trading systems, if eligible, at the market price of the common shares at the time of the acquisition.
During the course of the Previous Bid, which was in effect from June 20, 2012 to June 19, 2013, the Company acquired an aggregate of 1,838,075 common shares at an average price of $4.57 per share. The common shares acquired under the Previous Bid represented approximately 97% of the authorized maximum number of common shares that could be repurchased.
There are no persons acting jointly or in concert with the Company in respect of the Bid.
Cathedral is making the Bid as it believes that the trading price of its common shares on the TSX does not accurately reflect the value of the Company and to stabilize the trading price and provide liquidity in the market for its common shares.
Purchases on behalf of Cathedral will be made by National Bank Financial, 4th floor Podium, 130 King Street West, Toronto, Ontario, M5X 1J9.
Cathedral Energy Services Ltd. is incorporated under the Business Corporations Act (Alberta) (the "Act"). The Company is publicly traded on the Toronto Stock Exchange under the symbol "CET". The Company together with its wholly owned subsidiary, Cathedral Energy Services Inc., is engaged in the business of providing selected oilfield services to oil and natural gas companies in western Canada and selected oil and natural gas basins in the U.S. The Company is in the process of establishing operations in Venezuela for providing directional drilling services through a joint venture with Petroleros de Venezuela, S.A. ("PDVSA"), the state owned oil and gas corporation of the Bolivarian Republic of Venezuela. The Company strives to provide its clients with value added technologies and solutions to meet their drilling and production testing requirements. For more information, visit www.cathedralenergyservices.com.
FORWARD LOOKING STATEMENTS
This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company. The forward-looking statements or information contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE: Cathedral Energy Services Ltd.
For further information:
Requests for further information should be directed to:
Mark L. Bentsen, President and Chief Executive Officer or P. Scott MacFarlane, Chief Financial Officer
Cathedral Energy Services Ltd., 6030 - 3rd Street S.E., Calgary, Alberta T2H 1K2
Telephone: 403.265.2560 Fax: 403.262.4682 www.cathedralenergyservices.com