CALGARY, ALBERTA--(Marketwired - Aug. 9, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES ("U.S.")

The news release contains "forward-looking information and statements" within the meaning of applicable securities laws. For full disclosure of the forward-looking information and statements and the risks to which they are subject, see the "Cautionary Statement Regarding Forward-Looking Information and Statements" later in this news release.

Strad Energy Services Ltd., ("Strad" or the "Company") (TSX:SDY), a North American-focused, energy services company, today announced its financial results for the three and six months ended June 30, 2016. All amounts are stated in Canadian dollars unless otherwise noted.

SECOND QUARTER SELECTED FINANCIAL AND OPERATIONAL HIGHLIGHTS:

• Adjusted EBITDA⁽¹⁾ of $(2.0) million compared to $3.9 million for the same period in 2015. Adjusted EBITDA excluding restructuring, severance and acquisition related transaction costs would otherwise be $(1.5) million;
  
  
• Loss per share was $(0.19) compared to $(0.05) for the same period in 2015. Loss per share excluding restructuring, severance and acquisition related costs would otherwise be $(0.18);
  
  
• Revenue of $9.6 million decreased 68% compared to $29.9 million for the same period in 2015;
  
  
• Reduced total funded debt⁽²⁾ by $4.7 million to $10.2 million;
  
  
• Total funded debt⁽²⁾ to EBITDA⁽³⁾ ratio was 1.3 to 1.0 at the end of the second quarter of 2016;
  
  
• Capital additions totaled $0.2 million during the second quarter of 2016; and
  
  
• As previously announced on July 13, 2016, the Company entered into definitive agreements to acquire Redneck Oilfield Services Ltd. and Raptor Oilfield Services Ltd. (collectively "Redneck"). The completion of this acquisition is expected to create a stronger, more diverse rental platform to better service customers focused in the Montney and Duvernay plays of North East British Columbia and North West Alberta (the "Deep Basin"). The combined company will operate one of the newest, largest and most diverse fleets of rental equipment in the Deep Basin from key locations in Fort St.John, Dawson Creek and Grande Prairie.This acquisition is expected to close on August 31, 2016.
  
  

"Our second quarter results were impacted by low customer demand and spring breakup conditions in Western Canada," said Andy Pernal, President and CEO of Strad. "The second quarter of 2016 represented the first quarterly EBITDA loss in Strad's history. Despite a challenging second quarter, our strong balance sheet and financial position allowed us the opportunity to make a strategic acquisition of a rental company in the Duvernay and Montney regions. Through the remainder of 2016, we will continue to focus on our strategy of managing our cost structure, pursing energy and infrastructure work in Canada and the U.S. and creating size and scale as opportunities arise."

"Further cost reduction and debt management continued to be a focus for Strad during the second quarter," said Michael Donovan, Chief Financial Officer of Strad. "Our debt declined by a further $4.7 million during the second quarter as we unwound working capital in the business. Financial flexibility and cost structure management will be our focus during the remainder of 2016 as activity levels and working capital requirements increase."

Strad is also pleased to announce the appointment of Mr. Tom Alford to the Company's Board of Directors, effective August 8, 2016. Mr. Alford holds a Bachelor Degree in Commerce and comes to Strad with a track record of over 35 years in the oilfield services sector. Most recently, Mr. Alford was the President and Chief Executive Officer for IROC Energy Services Corp. prior to it being acquired by Western Energy Services Corp. Over his career, Mr. Alford also founded and served as President and Chief Executive Officer of Trimat Well Servicing Inc. as well as served as President and Chief Executive Officer of Bonus Resource Services Corp. Currently, Mr. Alford serves on the boards for High Arctic Energy Services Inc. and Wajax Corporation.

"We are pleased to have Mr. Alford join Strad as a director," said Rob Grandfield, Chairman of Strad's board. "He brings an extensive amount of experience in the oilfield services sector and will significantly contribute to helping Strad further develop and execute the Company's strategic plan in the coming years."

SECOND QUARTER FINANCIAL HIGHLIGHTS

FINANCIAL POSITION AND RATIOS

SECOND QUARTER RESULTS

Strad reported a decrease in revenue of 68% and a decrease in adjusted EBITDA of 151% during the three months ended June 30, 2016, compared to the same period in 2015. Decreased revenue during the second quarter was a result of reduced equipment utilization and pricing in both Canada and the United States ("U.S.") and lower Product Sales due to a significant decline in rig activity levels year-over-year. Adjusted EBITDA margin percentage in the second quarter of 2016 decreased to (21)% compared to 13% in the prior year, due to the decrease in overall revenue during the quarter.

Strad's Canadian Operations reported a decrease in revenue of 68% and adjusted EBITDA of 114% during the three months ended June 30, 2016, compared to the same period in 2015. Decreased revenue was a result of lower pricing and utilization of the surface equipment and matting fleets as a result of a 51% decline in the average drilling rig count to 47 rigs during Q2 2016 compared to 96 for the same period in 2015.

Rig counts in Strad's targeted U.S. resource plays were also significantly lower year-over-year during the second quarter of 2016 compared to the same period in 2015. Rig counts in the Bakken, Rockies and Marcellus regions decreased by 69%, 61%, and 59%, respectively, year-over-year. The rig count declines resulted in a 73% decrease in revenue during the second quarter of 2016 compared to 2015. As a result of lower revenue, adjusted EBITDA decreased 243% and adjusted EBITDA as a percentage of revenue decreased to (49)% during the second quarter of 2016 compared to 9% in the second quarter of 2015.

During the second quarter of 2016, capital expenditures were $0.1 million in Canada and $0.1 million in the U.S. Strad's 2016 capital budget of $7.3 million includes $4.5 million of maintenance capital expenditures and will be evaluated during the year based on affordability and activity levels.

RESULTS OF OPERATIONS

Canadian Operations

Revenue for the three months ended June 30, 2016, of $4.8 million decreased 68% compared to $15.1 million for the same period in 2015. Decreased revenue during the quarter was primarily a result of lower rental revenue from the surface equipment and matting fleets. In addition to price declines, utilization levels for surface equipment declined by 30% during the second quarter of 2016, compared to the same period in 2015, due to a 51% decline in average rig count in the WCSB over the same time period. Low commodity prices continued to cause the decline in rig count during the second quarter of 2016 as Strad's customers reduced capital spending.

During the second quarter, revenue from Strad's matting rental fleet decreased due to lower pricing and utilization. Strad's Canadian matting fleet decreased to approximately 45,800 pieces as at June 30, 2016, compared to approximately 55,500 pieces as at June 30, 2015. Utilization decreased 61% during the second quarter of 2016, compared to the second quarter of 2015, due to the rig count decline in the WCSB and delays in energy infrastructure projects.

Adjusted EBITDA for the three months ended June 30, 2016, of $(0.5) million, decreased 114% compared to $3.4 million for the same period in 2015. Adjusted EBITDA as a percentage of revenue, for the three months ended June 30, 2016, decreased to (10)% compared to 23% for the same period in 2015.

Revenue for the six months ended June 30, 2016, of $13.4 million, decreased 59% compared to $33.0 million for the same period in 2015. Decreased drilling activity was the primary driver of lower revenue year-over-year.

Adjusted EBITDA for the six months ended June 30, 2016, of $1.2 million, decreased 83% compared to $7.1 million for the same period in 2015. Adjusted EBITDA as a percentage of revenue, for the six months ended June 30, 2016, was 9% compared to 21% for the same period in 2015. 

Operating expenses for the three and six months ended June 30, 2016, of $4.0 million and $9.8 million decreased 60% and 56% respectively compared to $10.0 million and $22.2 million for the same period in 2015. The decline in operating expenses during the first six months of 2016 is a result of lower activity levels.

Selling, general and administration costs ("SG&A") for the three and six months ended June 30, 2016, of $1.3 million and $2.3 million decreased 24% and 38% respectively compared to $1.7 million and $3.7 million for the same period in 2015. SG&A costs decreased due to cost reductions implemented by management including staff reductions, wage roll backs and reductions in discretionary spending.

U.S. Operations

Revenue for the three months ended June 30, 2016, decreased 73% to $2.5 million from $9.4 million for the same period in 2015. The decline in revenue is due to a combination of lower rental fleet utilization rates and average pricing, offset by a strengthened U.S. dollar when compared to the same period in 2015. During the second quarter of 2016, utilization rates for Strad's U.S. matting, surface equipment and solids control fleets declined by 27%, 54%, and 63%, respectively, compared to the same period in 2015. Pricing pressure in Q2 2016 contributed further to revenue declines. Both utilization and price declines year-over-year are the result of a decline in rig counts across all Strad's targeted resource plays in the U.S. Average rig counts declined in the Bakken, Rockies and Marcellus regions by 69%, 61%, and 59%, respectively, during the second quarter of 2016 compared to the same quarter in 2015.

A slight increase in the matting and solids control rental fleets year-over-year partially offset declines in utilization rates and average pricing. The U.S. surface equipment fleet decreased by 19 pieces of equipment to 2,014 pieces as at June 30, 2016, compared to 2,033 pieces as at June 30, 2015. Strad's U.S. solids control fleet increased by 2 centrifuges to a total of 55 as at June 30, 2016, compared to 53 centrifuges as at June 30, 2015. The U.S. matting fleet increased by 140 pieces to 13,223 as at June 30, 2016, compared to 13,083 pieces as at June 30, 2015. Finally, a strengthening U.S. dollar from Q2 2016 to Q2 2015 helped offset a portion of the revenue decline.

Adjusted EBITDA for the three months ended June 30, 2016, decreased 243% to $(1.2) million compared to $0.9 million for the same period in 2015. Adjusted EBITDA as a percentage of revenue, for the three months ended June 30, 2016, was (49)% compared to 9% for the same period in 2015. The decrease in both adjusted EBITDA and adjusted EBITDA as a percentage of revenue is primarily due to the decline in revenue compared to the same period in 2015.

Revenue for the six months ended June 30, 2016, decreased 69% to $7.3 million compared to $23.5 million for the same period in 2015. The year-over-year decrease in revenue was primarily driven by decreased utilization of Strad's matting, surface equipment and solid controls fleets.

Adjusted EBITDA for the six months ended June 30, 2016, decreased 133% to $(1.6) million compared to $5.0 million for the same period in 2015. Decreased adjusted EBITDA was due to lower revenue compared to the same period in 2015. Adjusted EBITDA as a percentage of revenue for the six months ended June 30, 2016, was (23)% compared to 21% for the same period in 2015.

Operating expenses for the three and six months ended June 30, 2016, of $2.3 million and $6.4 million decreased 67% and 57% respectively compared to $7.0 million and $15.1 million for the same period in 2015. The decline in operating expenses during the first six months of 2016 is a result of lower activity levels. A portion of the Company's operating expenses are fixed, thus the percentage decline is lower for operating expenses compared to revenue.

SG&A costs for the three and six months ended June 30, 2016, of $1.4 million and $2.5 million decreased 7% and 26% respectively compared to $1.5 million and $3.4 million for the same period in 2015. SG&A costs decreased due to cost reductions implemented by management including staff reductions, wage roll backs and reductions in discretionary spending.

Product Sales

Product Sales are comprised of in-house manufactured products sold to external customers, third party equipment sales to existing customers and sales of equipment from Strad's existing fleet to customers.

Revenue for the three months ended June 30, 2016, decreased 59% to $2.2 million from $5.4 million for the same period in 2015, resulting primarily from lower sales of in-house manufactured products sold to external customers and third party equipment sales. During the second quarter, Product Sales consisted of $0.1 million of in-house manufactured products, $1.9 million of third party equipment sales and $0.2 million of rental fleet sales compared to $2.3 million, $2.2 million and $0.9 million, respectively, during the same period in 2015. Sales in the quarter were impacted by a significant decrease in demand, typical in the business when drilling activity levels decline.

Adjusted EBITDA for the three months ended June 30, 2016, increased 123% to $0.6 million compared to $0.3 million for the same period in 2015. Adjusted EBITDA as a percentage of revenue, for the three months ended June 30, 2016, was 27% compared to 5% for the same period in 2015. The increase in adjusted EBITDA was due to lower operating expenses during the second quarter of 2016 compared to the same period in the prior year.

Revenue for the six months ended June 30, 2016, decreased 47% to $4.1 million compared to $7.8 million for the same period in 2015. Revenue was lower during the first six months of 2016 due to decreased rig activity. Sales of Strad's rental fleet equipment fluctuate quarter-over-quarter and are primarily dependent on strategic opportunities to monetize underutilized rental assets. 

Adjusted EBITDA for the six months ended June 30, 2016, increased 521% to $0.6 million compared to $0.1 million for the same period in 2015. The increase in adjusted EBITDA was due to lower operating expenses during the first half of 2016 compared to the same period in 2015. Adjusted EBITDA as a percentage of revenue, for the six months ended June 30, 2016, was 16% compared to 1% for the same period in 2015.

Operating expenses for the three and six months ended June 30, 2016, of $1.6 million and $3.5 million decreased 68% and 55% respectively compared to $5.1 million and $7.6 million for the same period in 2015. Operating expenses were removed from the business as activity levels declined.

OUTLOOK

Low commodity prices continued to produce a marked decline in industry drilling rig activity across all basins in North America. During the second quarter, drilling rig activity reached the lowest levels in decades. Year-over-year rig count declines continue to increase each quarter. Declines in activity have extended to all operating regions impacting both oil and natural gas producing regions, which resulted in continued pricing pressures across all regions in the second quarter of 2016 as producers seek to reduce drilling costs.

In the WCSB, active drilling rigs in the second quarter of 2016 were down approximately 51% over the prior year, averaging 47 compared to 96 for the same period in 2015. In the U.S., drilling rig activity continued to vary by region, with the total active U.S. rig count decreasing by 54% on a year-over-year basis and 26% sequentially. The majority of Strad's U.S. fleet continues to operate in the Bakken, Rockies and Marcellus regions. The Rockies region, consisting of Colorado, Wyoming, and Utah had an average of 27 rigs drilling during the second quarter, representing a decline of 42% from rigs in the previous period. The active rig count in the Bakken averaged 25 rigs in the second quarter of 2016, down 55% from 80 in the prior year. In the gas-weighted Marcellus and Utica plays, the active rig count averaged 37 during the second quarter of 2016, 54% lower than 91 during the prior year period.

A continued focus, initiated in 2014, has been Management's expansion of the Company's service offerings to the energy infrastructure market, including pipeline construction, power transmission construction and energy facilities construction. This has diversified the business into markets that are expected to be less commodity price sensitive in the near term. Matting demand has been reasonably strong in Canada as several infrastructure related projects continue to progress despite the weak commodity price environment.

Overall, Strad's diversification across geographies in Canada and the U.S., exposure to both crude oil and natural gas activity, product line diversification, blue chip and well capitalized customer base, and exposure to energy infrastructure projects collectively, is expected to serve to insulate the business to some degree from the decline in drilling activity levels.

Management continued to actively manage costs and cash flow during the second quarter in response to lower activity levels. Additional headcount reductions, consisting of both direct and SG&A, were made during the second quarter bringing total headcount reductions to 263 or 75% since the end of 2014. Early in the third quarter, management has added some additional direct employees in response to moderately increased activity levels.

Energy infrastructure related activity is expected to increase during the second half of 2016 as numerous projects begin in the summer months. The majority of Strad's energy infrastructure related work continues to be wood access matting related and focused in Western Canada. Management is continuing to focus on the energy infrastructure market in the U.S.

Management's strategy continues to reflect a prudent and measured approach with a focus on cash preservation, debt paydown and maintaining flexibility to be able to respond to opportunities that are presented when the market does recover. The maintenance capex requirement in 2016 continues to be modest and is anticipated to be managed at or below $5 million per year in this environment. 

During the second quarter, outstanding debt was reduced by an additional $4.7 million, bringing total debt reduction to $29.3 million since March 31, 2015. Total funded debt was $10.2 million at June 30, 2016, and the total funded debt to adjusted EBITDA ratio was 1.3 to 1.0.

LIQUIDITY AND CAPITAL RESOURCES

As at June 30, 2016, working capital was $6.4 million compared to $12.4 million at December 31, 2015. The change in current assets is a result of a 68% decrease in accounts receivable to $5.4 million for the second quarter of 2016 compared to $16.8 million for the fourth quarter of 2015. Accounts receivable decreased due to the 68% decline in revenue during the second quarter of 2016 compared to the fourth quarter of 2015. Additionally, inventory decreased by 10% to $4.7 million for the second quarter of 2016 from $5.2 million for the fourth quarter of 2015, and prepaid expenses decreased to $1.1 million for the second quarter from $1.5 million for the fourth quarter of 2015. Inventory decreased due to the decline in Product Sales during Q2 2016 compared to Q4 2015.

The change in current liabilities is a result of a 25% decrease in accounts payable and accrued liabilities to $6.6 million for the second quarter of 2016 compared to $8.9 million at year end. Accounts payable decreased due to a decline in activity and operating expenses during Q2 2016 compared to Q4 2015. Bank indebtedness decreased to $0.5 million at the end of the second quarter compared to bank indebtedness of $2.9 million for the fourth quarter of 2015.

Funds from operations for the three months ended June 30, 2016, decreased to $(1.0) million compared to $4.0 million for the three months ended June 30, 2015. Capital expenditures totaled $0.2 million for the three months ended June 30, 2016. Strad's total facility borrowing increased by $6.5 million for the three months ended June 30, 2016, compared to Q4 2015. Management monitors funds from operations and the timing of capital additions to ensure adequate capital resources are available to fund Strad's capital program.

As at June 30, 2016, the Company's syndicated banking facility consists of an operating facility with a maximum principal amount of $10.0 million CAD and $7.0 million USD, and an $53.0 million syndicated revolving facility, both of which are subject to certain limitations on accounts receivable, inventory and net book value of fixed assets and are secured by a general security agreement over all of the Company's assets. As at June 30, 2016, the Company has access to the maximum credit facilities. The syndicated banking facility bears interest at bank prime plus a variable rate, which is dependent on the Company's funded debt to EBITDA ratio. The Company's syndicated banking facility matures on September 29, 2018.

Based on the Company's funded debt to EBITDA ratio of 1.3 to 1.0 at the end of the second quarter of 2016, the interest rate on the syndicated banking facility is bank prime plus 1.25% on prime rate advances and at the prevailing rate plus a stamping fee of 2.25% on bankers' acceptances. For the six months ended June 30, 2016, the overall effective rates on the operating facility and revolving facility were 4.40% and 2.82%, respectively. As of June 30, 2016, $0.5 million was drawn on the operating facility and $9.0 million was drawn on the revolving facility. Required payments on the revolving facility are interest only.

As at June 30, 2016, the Company was in compliance with all of the financial covenants under its credit facilities.

The relevant definitions of financial debt covenant ratio terms as set forth in the Company's syndicated banking facility are as follows:

• Funded debt includes bank indebtedness plus long-term debt plus current and long-term obligations under finance lease less cash.
• EBITDA is based on trailing twelve months adjusted EBITDA plus share based payments, plus additional one time charges.
• Interest expense ratio is calculated as the ratio of trailing twelve months adjusted EBITDA plus share based payments to trailing twelve months interest expense on loans and borrowings.

The above noted definitions are not recognized under IFRS and are provided strictly for the purposes of the financial debt calculation.

In connection with the acquisition previously announced on July 13, 2016, Strad has amended its existing credit facilities to include amendments to financial covenants, an equity cure, as well as reduce the current limits from CAD $63.0 million plus $7.0 million USD to CAD $43.5 million plus $5.0 million USD. These amendments are contingent to the completion of the acquisition. Strad believes the proposed acquisition will have a positive effect on the financial condition, performance and cash flows of the combined Company, which will be realized through operational and strategic synergies. 

NON-IFRS MEASURES RECONCILIATION

Certain supplementary measures in this press release do not have any standardized meaning as prescribed under IFRS and, therefore, are considered non-IFRS measures. These measures are described and presented in order to provide shareholders and potential investors with additional information regarding the Company's financial results, liquidity and its ability to generate funds to finance its operations. These measures are identified and presented, where appropriate, together with reconciliations to the equivalent IFRS measure. However, they should not be used as an alternative to IFRS, because they may not be consistent with calculations of other companies. These measures are further explained below.

Earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") is not a recognized measure under IFRS. Management believes that in addition to net income, adjusted EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company's principal business activities prior to consideration of how those activities are financed or how the results are taxed. Adjusted EBITDA is calculated as net income (loss) plus interest, finance fees, taxes, depreciation and amortization, loss on disposal of property, plant and equipment, loss on foreign exchange, less gain on foreign exchange and gain on disposal of property, plant and equipment. Segmented adjusted EBITDA is based upon the same calculation for defined business segments, which are comprised of Canadian Operations, U.S. Operations and Product Sales.

Funds from operations are cash flow from operating activities excluding changes in working capital and foreign exchange gains and losses. It is a supplemental measure to gauge performance of the Company before non-cash items. Working capital is calculated as current assets minus current liabilities. Working capital, cash forecasting and banking facilities are used by Management to ensure funds are available to finance growth opportunities.

Funded debt is calculated as bank indebtedness plus long-term debt plus current and long-term portion of finance lease obligations less cash.

Reconciliation of EBITDA and Funds from Operations

($000's)

Reconciliation of quarterly non-IFRS measures

($000's)

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS

Certain statements and information contained in this press release constitute forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "plan", "continue", "estimate", "anticipate", "potential", "targeting", "intend", "could", "might", "should", "believe", "may", "predict", or "will" and similar expressions are intended to identify forward-looking information or statements. More particularly, this press release contains forward-looking statements concerning completion of the Acquisition and the timing thereof, future capital expenditures of the Company and funding thereof, changes and expectations in margins to be experienced by Strad, anticipated cash flow, debt, demand for the Company's products and services, drilling activity in North America, pricing of the Company's products and services, introduction of new products and services and the potential for growth and expansion of certain components of the Company's business, anticipated benefits from cost reductions and timing thereof, and expected exploration and production industry activity including the effects of industry trends on demand for the Company's products. These statements relate to future events or to the Company's future financial performance and involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements.

Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this press release. The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve 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 information or statements. In addition to other material factors, expectations and assumptions which may be identified in this press release and other continuous disclosure documents of the Company referenced herein, assumptions have been made in respect of such forward-looking statements and information regarding, among other things: the Company will complete the Acquisition; the Company will continue to conduct its operations in a manner consistent with past operations; the general continuance of current industry conditions; anticipated financial performance, business prospects, impact of competition, strategies, the general stability of the economic and political environment in which the Company operates; exchange and interest rates; tax laws; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services and the adequacy of cash flow; debt and ability to obtain financing on acceptable terms to fund its planned expenditures, which are subject to change based on commodity prices; market conditions and future oil and natural gas prices; and potential timing delays. Although Management considers these material factors, expectations and assumptions to be reasonable based on information currently available to it, no assurance can be given that they will prove to be correct.

Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect the Company's operations and financial results are included in reports on file with the Canadian Securities Regulatory Authorities and may be accessed through the SEDAR website (www.sedar.com) or at the Company's website. The forward-looking statements and information contained in this press release are expressly qualified by this cautionary statement. The Company does not undertake any obligation to publicly update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, any securities in the United States, nor shall there be any sale of securities mentioned in this press release in any state in the United States in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

SECOND QUARTER EARNINGS CONFERENCE CALL

Strad Energy Services Ltd. has scheduled a conference call to begin promptly at 8:00 a.m. MT (10:00 a.m. ET) on Wednesday, August 10, 2016.

The conference call dial in number is 1-866-225-2055 / 1-416-340-2218

The conference call will also be accessible via webcast at www.stradenergy.com

A replay of the call will be available approximately one hour after the conference call ends until Wednesday, August 17th, 2016, at 11:59pm ET. To access the replay, call 1-800-408-3053, followed by pass code 8832922.

ABOUT STRAD ENERGY SERVICES LTD.

Strad is a North American energy services company that provides rental equipment and matting solutions to the oil and gas and energy infrastructure sectors. Strad focuses on providing complete customer solutions in Canada and the United States.

Strad is headquartered in Calgary, Alberta, Canada. Strad is listed on the Toronto Stock Exchange under the trading symbol "SDY".