Savanna Energy Services Corp. ("Savanna") (TSX:SVY) announces it has received a demand (the "Notice") from Western Energy Services Corp. ("Western") for payment of a termination fee in the amount of $20 million pursuant to the arrangement agreement between Savanna and Western dated March 8, 2017, as amended on March 14, 2017 (the "Arrangement Agreement"). Savanna terminated the Arrangement Agreement on March 28, 2017 following the acquisition by Total Energy Services Inc. of over 50% of the outstanding common shares of Savanna. Pursuant to the Notice, Western is claiming Savanna was not entitled to terminate the Arrangement Agreement pursuant to its terms and therefore breached the Arrangement Agreement.
Savanna is of the view there is no basis for the claim made by Western in the Notice and intends to vigorously defend any claim made by Western for payment of the termination fee.
Savanna is a leading contract drilling and oilfield services company operating in North America and Australia providing a broad range of drilling, well servicing and related services with a focus on fit for purpose technologies and industry-leading Aboriginal relationships.
SOURCE: Savanna Energy Services Corp.
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