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CALGARY, ALBERTA--(Marketwired - Aug. 20, 2015) - Trican Well Service Ltd. (TSX:TCW) is pleased to announce the closing of the sale of its Russian pressure pumping business to RN Assets LLC (the "Purchaser"), a subsidiary of Rosneft Oil Company. As previously announced, the transaction involves the sale of all shares of Trican Well Service LLC, an indirect wholly-owned subsidiary of Trican that holds the Russian pressure pumping business, to the Purchaser for a purchase price of US $150 million, or approximately CDN $196.7 million at the August 19, 2015 exchange rate of 0.7628, which amount is comprised of a purchase price of US $140 million and an initial working capital adjustment of US $10 million, with additional working capital and net debt adjustments to be determined. Trican intends to apply the net proceeds from this transaction to reduce its outstanding debt.
Dale Dusterhoft, CEO of Trican, stated, "We are very pleased to have closed this transaction. We are very proud of the business Trican built in Russia and of the excellent employees who have worked very hard to make this business successful. We believe, however, that it is the right time for our company to exit the Russian pressure pumping business and focus on improving the profitability of our North American business. This transaction allows us to strengthen our balance sheet and to move forward in our plans to weather the current economic downturn."
Cautionary Statements Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as "expect", "intend", "anticipate", and other similar words, or statements that certain events or conditions "may" or "will" occur. The forward-looking information in this news release relates, but is not limited to, statements with respect to the sale of Trican's Russian pressure pumping business, including the nature and magnitude of the adjustments to the purchase price, the expected use of net proceeds from the transaction and the impact of the transaction on Trican's financial condition, including its balance sheet and ability to withstand the current economic downturn.
The forward-looking information set out in this news release, is based on certain expectations and assumptions regarding, among other things, the absence of further changes and further economic conditions which may adversely affect Trican.
Forward-looking information is subject to known and unknown risks and uncertainties and other factors which may cause actual results, events and achievements to differ materially from those expressed or implied in such forward-looking information. Actual results could differ materially from those described in this press release as a result of the risk factors set forth under the section entitled "Risks Factors" in our Annual Information Form dated March 25, 2015. Readers are also referred to the risk factors and assumptions described in other documents filed by Trican from time to time with securities regulatory authorities.
Trican undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward looking information.
Headquartered in Calgary, Alberta, Trican provides a comprehensive array of specialized products, equipment and services that are used during the exploration and development of oil and gas reserves.
Requests for shareholder information should be directed to the undersigned.