Western Energy Services Corp. ("Western") (TSX:WRG) is pleased to announce that it has entered into an amending agreement (the "Amending Agreement") to amend the arrangement agreement (the "Arrangement Agreement") with Savanna Energy Services Corp. ("Savanna") (TSX:SVY) to acquire Savanna pursuant to a court approved plan of arrangement (the "Transaction"), to: (i) increase the consideration to be paid to shareholders of Savanna pursuant to the plan of arrangement from 0.85 of a Western common share for each Savanna common share, to 0.85 of a Western common share plus $0.21 in cash ("Cash Consideration") for each Savanna common share; and (ii) increase the reciprocal non-completion fee by $5 million to $20 million.
Other than as disclosed herein, all other material terms and conditions of the Arrangement Agreement remain unchanged.
Western will fund the Cash Consideration through cash on hand at closing.
Raymond James Ltd. is acting as the financial advisor to Western in connection with the Transaction, and has provided the board of directors of Western (the "Western Board") with its verbal opinion that, as of the date hereof, subject to review of the final form of documents effecting the Transaction, and certain assumptions, limitations and qualifications, the amended consideration, under the amended Arrangement Agreement, to be paid for the Savanna common shares by Western is fair, from a financial point of view to Western.
The amendment to the Arrangement Agreement was unanimously approved by the Western Board. The Western Board has also unanimously determined that the Transaction is in the best interests of Western and its shareholders, and remains fully committed to completing the Transaction with Savanna.
Similarly, the amendment to the Arrangement Agreement was unanimously approved by the directors of Savanna (''Savanna Board"), and by the independent committee formed by the Savanna Board. The Savanna Board has also unanimously determined that the Transaction is fair to the shareholders of Savanna and is in the best interests of Savanna and its shareholders, and remains fully committed to completing the Transaction with Western.
A copy of the Amending Agreement will be filed and available on SEDAR under each of Western's and Savanna's profiles at www.sedar.com.
About Western Energy Services Corp.
Western is an oilfield service company which provides contract drilling services in Canada through its division Horizon Drilling and in the United States through its wholly owned subsidiary Stoneham Drilling Corporation. In Canada, Western also provides well servicing through its division Eagle Well Servicing and provides oilfield rental services through its division Aero Rental Services.
SOURCE: Western Energy Services Corp.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.