Great Prairie Energy Services Inc. Provides Update on Non-Brokered Private Placement and Default Under Bank Facility
CALGARY, ALBERTA--(Marketwired - Jan. 18, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S.
Great Prairie Energy Services Inc. (TSX VENTURE:GPE) ("Great Prairie" or the "Company") announces that further to its news release dated December 24, 2015, the Company was unable to complete its non-brokered private placement of common shares of the Company ("Common Shares") at a price of $0.03 per Common Share (the "Offering"). The Offering could not be completed due to prevailing negative market conditions resulting from declining commodity prices.
As a result of several factors, including failure to complete the Offering, diminished cash flow from operations which the Company believes is attributable to the declining commodity price environment and consequently, curtailed oilfield activity, the Company is in default of certain conditions contained in its bank credit facility. The Company continues to discuss possible outcomes with its bank, which may include the sale of the Company or its assets.
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, Sundre, Rocky Mountain House and Valleyview, Alberta through its operating entities.
Forward-Looking Statements and Reader Advisory
This news release contains forward-looking statements. More particularly, this news release contains statements concerning the anticipated requirements of the Company's bank as a result of the Company's default under the terms and conditions of its credit facility. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "plan", "expect", "may", "will", "project", "predict", "believe" and similar expressions. 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. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the outcomes contemplated by the forward-looking statements will not occur. With respect to forward-looking statements contained in this news release, Great Prairie has made assumptions regarding, among other things: the market demand for the Common Shares of the Company, the general condition of the capital markets, the current state of the oil and gas services industry in general, the level of oilfield activity and the demand for the services of Great Prairie, the impact of increasing competition, and Great Prairie's ability to obtain additional financing on satisfactory terms. These risks and uncertainties include, among other things: the risk that the Company may not be able to retain key employees to continue to maintain its operations; risk relating to Great Prairie's ability to complete future financings; risks relating to the state of the economy in general and capital markets in particular; risks relating to investor interest in the business and future prospects of Great Prairie; risks that Great Prairie's customers may not increase, or may even decrease, their activity levels; risks relating to changes in the demand for or the price of oil and natural gas; risks relating to increases in costs of labor, fuel, equipment and supplies employed and used in Great Prairie's businesses; risks relating to compliance with environmental, health and safety laws and regulations, as well as actions by governmental and regulatory authorities; and other risks affecting Great Prairie's ability to maintain or improve operations, including its ability to maintain prices for services under market pricing pressures, weather risks, and the impact of potential increases in general and administrative expenses.
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.
(January 18, 2016 - 3:37 PM EST)
News by QuoteMedia