Source Energy Obtains Court Approval of its Recapitalization Transaction

(TheNewswire)

Calgary, Alberta – TheNewswire - November 27, 2020 - (TSX:SHLE)

Source Energy Services Ltd. (together with its affiliates, “Source” or the “Company”) announced today that it has obtained a Final Order of the Court of Queen’s Bench of Alberta approving the Company’s recapitalization transaction (the “Recapitalization Transaction”) pursuant to a plan of arrangement dated November 25, 2020 (the “Plan of Arrangement”) under the Canada Business Corporations Act (the “CBCA”).

Subject to the satisfaction or waiver of the conditions to the implementation of the Plan of Arrangement (including the finalization and execution of definitive documentation relating to the New Secured Notes, the Company’s senior bank financing arrangements, and a revised intercreditor agreement), the Company expects to complete the Recapitalization Transaction in December 2020.

ABOUT SOURCE ENERGY SERVICES

Source is a logistics company that focuses on the supply and distribution of high quality Northern White frac sand. Source provides its customers with a full end-to-end solution supported by its Wisconsin mines and processing facilities, its Western Canadian terminal network and its “last mile” logistics capabilities. In addition to its industry leading frac sand transload terminal network and in-basin frac sand storage capabilities, Source also provides storage and logistics services for other bulk oil and gas well completion materials that are not produced by Source. Source has also developed Sahara, a proprietary wellsite mobile sand storage and handling system.

Source’s full-service approach allows customers to rely on its logistics capabilities to increase reliability of supply and to ensure the timely delivery of their requirements for frac sand and other bulk completion materials at the wellsite.

For further information, please contact:

Media Inquiries:        

Meghan Somers       

Communications Advisor       

(403) 262-1312 (ext. 295)       

[email protected]       

Investor Relations Inquiries:

Brad Thomson

Chief Executive Officer

(403) 262-1312 (ext. 225)

investorrelations@sourceenergyservices.com

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release constitute forward-looking statements relating to, without limitation, expectations, intentions, plans and beliefs, including information as to the future events, the expected process for and timing of implementing the Recapitalization Transaction, the Plan of Arrangement and related financing arrangements, and the satisfaction or waiver of the conditions to the Plan of Arrangement. In certain cases and without limitation, forward-looking statements can be identified by the use of words such as “seeks” or variations of such words and phrases, or state that certain actions, events or results “may” or “will” be taken, occur or be achieved. Such forward-looking statements reflect Source’s beliefs, estimates and opinions regarding the Recapitalization Transaction and related transactions, the CBCA proceedings, Source’s future growth, results of operations, future performance (both operational and financial), and business prospects and opportunities at the time such statements are made, and Source undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or circumstances should change. Forward-looking statements are necessarily based upon a number of estimates and assumptions made by Source that are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Forward-looking statements are not guarantees of future performance. In particular, this press release contains forward-looking statements pertaining, but not limited, to: expectations regarding the Recapitalization Transaction, the CBCA proceedings and the Plan of Arrangement.

By their nature, forward-looking statements involve numerous current assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Source to differ materially from those anticipated by Source and described in the forward-looking statements.

With respect to the forward-looking statements contained in this press release, assumptions have been made regarding, among other things: the Recapitalization Transaction, the CBCA proceedings and the Plan of Arrangement.

A number of factors, risks and uncertainties could cause results to differ materially from those anticipated and described herein including, among others: Source’s ability to complete the Recapitalization Transaction and satisfy the conditions precedent to the completion of the Plan of Arrangement, and the final terms, timing and implementation of the Recapitalization Transaction and related transactions.

Although Source has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will materialize or prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement. Readers should not place undue reliance on forward-looking statements. These statements speak only as of the date of this press release. Except as may be required by law, Source expressly disclaims any intention or obligation to revise or update any forward-looking statements or information whether as a result of new information, future events or otherwise.

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