News Releases

Strad Energy Services Ltd. Closes Initial Public Offering

Nov 23, 2010
Strad Energy Services Ltd. ("Strad" or the "Corporation") announced today that it has completed its initial public offering of 10,000,000 common shares at a price of $4.00 per common share for gross proceeds of $40,000,000.

The offering was carried out by a syndicate of investment dealers led by Raymond James Ltd. and including CIBC World Markets Inc., Macquarie Capital Markets Canada Ltd., Peters & Co. Limited, GMP Securities L.P., HSBC Securities (Canada) Inc. and Paradigm Capital Inc. (collectively, the "Agents"). The Corporation has granted to the Agents an option, exercisable, in whole or in part from time to time, for up to 30 days following closing, to offer for sale up to an additional 1,500,000 common shares at a price of $4.00 per common share to cover over allotments, if any, and for market stabilization purposes.

The common shares of the Corporation will commence trading today on the Toronto Stock Exchange ("TSX") under the symbol "SDY".

The net proceeds of the offering will be used to fund the Corporation's 2011 capital expenditure program. Proceeds realized upon exercise of the over allotment option, if any, will also be utilized to fund the Corporation's 2011 capital expenditure program.

"This is a significant corporate milestone, with the offering  substantially funding our 2011 capital expenditure program, and supporting the  continued development of our business strategy", stated Henry van der Sloot, Chief Executive Officer of Strad.

About Strad Energy Services Ltd.

Strad is a diversified energy services company that focuses on providing oilfield solutions to the oil and natural gas industry in the Western Canadian Sedimentary Basin (WCSB) and throughout the United States.  Strad operates with two core divisions: Drilling Services and Production Services.  Drilling Services focuses on providing complete customer solutions in drilling-related oilfield equipment for producers active in unconventional resource plays. Production Services focuses on delivering a range of products and services to support the ongoing maintenance of natural gas and oil production.

 

When used in this news release, the words "will", "estimate" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the date that the statements are made, and the Corporation undertakes no obligation to update forward-looking statements if conditions or opinions should change, except as required by applicable law.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

For more information, please contact

Strad Energy Services Ltd.
Henry van der Sloot
Chief Executive Officer
(403) 249-7336
Fax: (403) 232-6901
email: hvandersloot@stradenergy.com

 

Strad Energy Services Ltd.
Andy Pernal
President
(403) 775-9202
Fax: (403) 232-6901

email: apernal@stradenergy.com

 

Strad Energy Services Ltd.
Byron Johnson
Chief Financial Officer
(403) 775-9219
Fax: (403) 232-6901

email: bjohnson@stradenergy.com

 

Strad Closes IPO Press Release