/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN UNITED STATES OR TO ANY
UNITED STATES NEWS SERVICES./
CALGARY, July 14, 2011 /CNW/ - IROC Energy Services Corp. ("IROC" or the
"Corporation") (TSXV: ISC) announces it has sold the business assets
(excluding cash, accounts receivable and accounts payable) and business
of its Canada Tech division ("Canada Tech") for cash consideration of
approximately $4.8 million to a wholly owned subsidiary of Reservoir
Group Limited ("Reservoir Group"). Canada Tech, a designer, developer,
and manufacturer of a wide line of tools and systems that measure
pressures, temperatures and other attributes in the downhole and
surface environment of oil and gas wells, was the only remaining
technology services business operated by IROC, with the Corporation's
other technology businesses being divested in 2009. The sale includes
the complete Canada Tech division with all existing division employees
being offered continued employment by the purchaser.
Tom Alford, President and CEO of IROC commented, "Reservoir Group is an
emerging global market leader in downhole tools, technologies and
associated sub-surface services with an international footprint which
should help drive forward and enhance Canada Tech's opportunities
worldwide. We believe that this is the best outcome for Canada Tech's
employees and customers and the IROC stakeholders". Mr. Alford further
commented that, "the sale of Canada Tech completes the divestiture of
the last business in IROC's technology services business segment and
will allow our management team to focus IROC's strategy on continuing
to grow our various drilling and production services businesses, which
include Eagle Well Servicing, Aero Rental Services and Helix Coil
Services."
Reservoir Group CEO, Pascal Bartette commented "We welcome Canada Tech
and its employees to the Reservoir Group. Canada Tech has developed
leading technical solutions for well monitoring which complement
Reservoir Group's existing first class solutions from our group
company, Omega Data Services. With increasingly complex well
completions, understanding the downhole conditions is critical to
maximising value from the reservoir. The combination of RG's
international network and advanced monitoring solutions offers
tremendous opportunities to our well monitoring business line. We are
truly excited about the potential of the combined businesses who have
very little overlap but rather complementary services."
About IROC Energy Services Corporation
IROC Energy Services Corp. is an Alberta oilfield services company that,
through the IROC Energy Services Partnership, provides a diverse range
of products, services and equipment to the oil and gas industry that
are among the newest and most innovative in the WCSB. IROC Energy
Services Partnership operates under the business names of Eagle Well
Servicing, Aero Rental Services, and Helix Coil Services. IROC
combines cutting-edge technology with depth of experience to deliver a
product and services offering in the following core areas: Well
Servicing & Equipment, Rental Services, and Coiled Tubing Services &
Equipment. For more information on IROC Energy Services Corp. visit our
website at www.iroccorp.com.
About Reservoir Group
Reservoir Group is an
Aberdeen-based global oilfield services group whose businesses all
undertake niche activities focused on the hydrocarbon reservoir.
The Group's four main activities areas are downhole drilling tools,
formation evaluation, completion and production and physical and
digital data management. The group who incorporated in 2007 has large
ambitions and developed a new original business model appealing to
stakeholders.
Reservoir Group's unique approach has led to its
successful international development over the past four years, with a
number of highly-regarded businesses having become part of the Group's
rapid expansion. Reservoir Group is backed by Houston-based oil & gas
specialist private equity firm SCF Partners. For more information on
Reservoir Group please visit www.reservoir-group.com.
Cautionary Statements
Certain statements contained in this news release may constitute forward
looking statements concerning, among other things, the effect of the
sale of the Canada Tech division on IROC's operations and financial
results, 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
