IROC Energy Services Corp. announces sale of Envirocore division assets
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/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN UNITED STATES OR TO ANY
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IROC Energy Services Corp. ("IROC" or the "Corporation") (TSX: "ISC") announces that it has entered into a definitive agreement with Winalta Construction Inc., a subsidiary of Winalta Inc., to dispose of IROC's Envirocore division assets for $4.8 million. The assets include all lease construction associated equipment and inventories currently operated by IROC's Envirocore division in NE British Columbia. On closing IROC will receive $3.3 million with the $1.5 million balance to be paid over the next two years. The transaction will close on February 27, 2009.
All Envirocore employees have been offered employment by Winalta Construction Inc. as they look to build upon the Envirocore assets and business to expand their operations in NE British Columbia.
This transaction allows IROC to further reduce its outstanding indebtedness and will provide IROC increased financial flexibility in its ongoing operations.
Tom Alford, President and CEO, commented that "this transaction represents a further effort on our part to focus our efforts on our core business operations to provide the greatest potential return for the benefit of all stakeholders in IROC." Mr. Alford further commented that "while Envirocore has become a consistent contributor to IROC's bottom line through its efficient operations, the capital requirements to further grow this relatively small division within IROC did not align with IROC's overall goals. We firmly believe that Winalta will take Envirocore's business to the next level for the benefit of its employees and customers."
About IROC Energy Services Corp.
IROC Energy Services Corp. is an Alberta oilfield services company that, through the IROC Energy Services Partnership, provides a comprehensive and diverse range of products, services and equipment to the oil and gas industry. IROC combines cutting-edge technology with depth of experience to deliver a product and services offering in the following areas: Well Servicing & Equipment, Downhole Temperature & Pressure Monitoring Tools, Rental Services, and Lease Building. For more information on IROC Energy Services Corp. visit our website at www.iroccorp.com.
Cautionary Statements
Certain statements contained in this press release may constitute forward looking statements concerning, among other things, expected revenues, expected expenses, profits, developments and strategies for IROC's operations all of which are subject to certain risks, uncertainties and assumptions. These forward looking statements are identified by their use of terms and phrases such as "anticipate", "continue", "estimate", "expect", "may", "will", "projected", "should", "believe" and other similar terms and phrases. By its nature, such forward looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking statements. These risks include, but are not limited, to the risks associated with the oil and gas industry generally, fluctuating prices in crude oil and natural gas, changes in drilling activity, general global economic, political and business conditions, weather conditions, regulatory changes and availability of products, qualified personnel and manufacturing capacity and raw materials. If any of these uncertainties materialize, or if assumptions are incorrect actual results may vary materially from those expected. IROC relies on litigation protection for any forward looking statements.
This press release is not for dissemination in United States or to any United States news services. The Common Shares of IROC have not and will not be registered on the United States Securities Act of 1933, as amended (the "United States Securities Act") or any state securities laws and are not offered or sold in the United States or to any US person except in certain transactions exempt from the registration requirements of the United States Securities Act and applicable state securities laws.
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SOURCE: IROC Energy Services Corp.
IROC Energy Services Corp., Mr. Thomas M. Alford, President and CEO, Telephone: (403)
263-1110, email: investorrelations@iroccorp.com
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