CALGARY, ALBERTA--(Marketwired - Nov. 2, 2015) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
Great Prairie Energy Services Inc. (TSX VENTURE:GPE) ("Great Prairie" or the "Company") announces additional cost reduction measures, which include further staff reductions, elimination of field overtime and consolidation of management between field locations which the Company expects will generate additional savings of approximately $0.5 million annually. These cuts are in addition to the previously announced measures, which, in the aggregate, management anticipates will save the Company in excess of $2.25 million annually. These cuts are expected to allow the Company to operate profitably in the existing commodity price environment and current activity levels.
The Company also wishes to announce the resignation of Sid Dutchak as Chief Executive Officer. Rob Jepson, who is and will remain the Company's Chairman of the board of directors, will act as the interim Chief Executive Officer. The Company's board of directors thanks Mr. Dutchak for his contributions during his time with the Company and looks forward to continuing to work with Mr. Dutchak, who will remain on the board of directors of the Company.
The Company's previously announced forbearance agreement with its lender has been extended until November 30, 2015. The lender has agreed that, subject to certain conditions, it will not seek to enforce any default remedies it has until after November 30, 2015. The Company continues to work with its current lender to find an appropriate solution to its previously announced default on its credit facility.
The Company continues to advance discussions about restructuring its credit facilities that, once in place, is expected to provide stability and financial flexibility to enable the Company to operate through the existing low commodity price environment.
About Great Prairie Energy Services Inc.
Great Prairie Energy Services Inc. is a Canadian energy services company focused on servicing oil and gas activity in Saskatchewan and Alberta. Great Prairie provides general oilfield hauling, equipment rental and frac fluid services out of Kindersley, Saskatchewan and Drumheller, Rocky Mountain House and Valleyview, Alberta through its operating entities.
Forward-Looking Statements and Reader Advisory
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements are often, but not always, identified by the use of words such as " "anticipate", "plan", "expect", "may", "will", "should", "project", "predict", "believe" and similar expressions. In particular, this news release contains forward-looking statements about the anticipated timing of the transition to the Company's new credit facility, the successful negotiation of a new credit facility with the new lender on reasonable and competitive terms, and the willingness of the Company's current lender to continue to forbear.
The forward-looking statements and information are based on certain key expectations and assumptions made by Great Prairie, including expectations and assumptions concerning the negotiation of a new credit facility. Although Great Prairie believes that the expectations and assumptions on which such forward-looking statements and information are based to be reasonable, readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a number of factors and risks. Such factors may include the failure to successfully restructure its credit facility. There is no certainty that the existing lender will continue to forbear, that the Company will meet the conditions of the forbearance agreement and consequently cause the lender to exercise default remedies it has, or that a new credit facility will be successfully negotiated with a new lender. Other factors that could materially affect such forward-looking information are described in the risk factors in the Company's most recent annual management's discussion and analysis that is available on SEDAR at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements included in this news release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, Great Prairie disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, Great Prairie undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above. There is a significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that management's or third party's assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.