CWC Energy Services Corp. ("CWC" or the "Company") is pleased to announce that in light of improving oilfield activity and emerging opportunities for consolidation within the industry, the Company has initiated a process to review strategic alternatives with a view to maximizing shareholder value by capitalizing on CWC's strong financial and operational performance, market share and attractive fleet of modern assets. This process has been unanimously approved by the Company's Board of Directors and it has the full support of the Company's management and major shareholder, Brookfield. It may include, among other alternatives, a merger, business combination, partnership, joint venture, strategic alliance, sale of the Company or a portion of its assets, an equity or debt financing, or a corporate reorganization.
A special committee of the Company's Board of Directors has been established to oversee the review of strategic alternatives and has retained GMP FirstEnergy and CIBC World Markets Inc. as its financial advisors.
Duncan Au, President and Chief Executive Officer, stated, "The Board and senior management team are in agreement that the improving oilfield environment and increased merger and acquisition activity in the sector have created an opportunity for CWC to explore potential transactions for the benefit of CWC's shareholders, employees, customers and other stakeholders."
The Company has not established a definitive timeline to complete its review and no decision on any particular alternative has been reached at this time. CWC does not intend to disclose developments with respect to the strategic alternatives process unless and until the Board of Directors approve a definitive transaction or other course of action or otherwise deem disclosure of developments is appropriate or otherwise required by law. CWC cautions that there are no guarantees that the strategic alternatives process will result in a transaction, or if a transaction is undertaken, as to its terms or timing. The strategic alternatives process has not been initiated as a result of receiving any transaction proposal.
About CWC Energy Services Corp.
CWC Energy Services Corp. is a premier contract drilling and well servicing company operating in the Western Canadian Sedimentary Basin with a complementary suite of oilfield services including drilling rigs, service rigs, and coil tubing. The Company's corporate office is located in Calgary, Alberta, with operational locations in Nisku, Grande Prairie, Slave Lake, Red Deer, Drayton Valley, Lloydminster, Provost, and Brooks, Alberta. The Company's shares trade on the TSX Venture Exchange under the symbol "CWC".
SOURCE: CWC Energy Services Corp.
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