CALGARY, ALBERTA–(Marketwired – Oct. 1, 2013) – New West Energy Services Inc. (“New West” or the “Corporation”) (TSX VENTURE:NWE) is pleased to announce that it has completed its purchase of 1770245 Alberta Ltd. (“1770245”), a private business in the oilfield services industry providing combination, hydrovac and boiler truck services to the completions and production sectors of the oil and gas industry, predominantly in the Peace region of Alberta. The purchase was completed pursuant to the terms of a share purchase agreement dated September 17, 2013 among New West, the shareholders (the “Vendors”) of 177024, Tippin D Oilfield Services Ltd. (“Tippin D”), and 40 Creek Oilfield Services Ltd. (“40 Creek”) pursuant to which the Corporation acquired all of the issued and outstanding common shares of 1770245 for an aggregate purchase price of $1.8 million, comprised of a $1.3 million cash payment and the issuance of 3,000,000 common shares of the Corporation at a deemed price of $0.10 per share. A post-closing payment of up to $200,000 is payable as an earn out upon achieving certain performance thresholds over a twelve month period post close.
The new service will operate under the name Bearstone Vacuum Services which is a division of the wholly owned subsidiary BearStone Environmental Solutions Inc. Daniel Huys, the Founder and President of Tippin D, 40 Creek and 1770245, has agreed to serve as an Area Manager for Bearstone Vacuum Services.
About New West Energy Services Inc.
The Corporation operates in the oilfield service industry in Canada through two wholly owned subsidiaries – BearStone Environmental Solutions Inc. and Porterco Oilfield Services Inc. BearStone provides environmental services to the upstream oil and gas industry and also operates a fleet of specialized vacuum and water trucks. Porterco operates a fleet of trucks and trailers for hauling oil contaminated drill cuttings as well as providing equipment rental and custom fabrication services.
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Cautionary Note Regarding Forward-Looking Statements
Except for the statements of historical fact contained herein, certain information presented herein constitutes “forward-looking statements”. The forward-looking statements contained in this press release are solely opinions and forecasts which are uncertain and subject to risks. Forward-looking statements include but are not limited to uncertainties and other factors which September cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties. Accordingly, readers are cautioned that the assumption used in the preparation of the forward-looking statements, although considered reasonable at the time of preparation September prove to be imprecise and, as such undue reliance should not be placed on forward-looking statements.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Corporation 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, the Corporation undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.
Gerry E. Kerkhoff
President & Chief Executive Officer
403.984.9798 or 1.888.977.2327 (BEAR)