Trican Announces Closing of Sale of Its Water Management Business

Ad blocking detected

Thank you for visiting CanadianInsider.com. We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Ultra Club
$500/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads
JOIN THE CLUB

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

Calgary, Alberta--(Newsfile Corp. - January 15, 2020) -  Trican Well Service Ltd. (TSX: TCW) ("Trican" or the "Company") is pleased to announce that it has closed the previously announced sale of the assets and business of Fraction Energy Services Ltd. ("Fraction"), a wholly owned subsidiary of Trican (the "Transaction") to Green Energy Services Inc. (collectively, the "Purchaser" or "Green") for consideration of $17.6 million, of which $4 million has been paid by way of a secured vendor take-back loan. The loan is repayable within three years, has terms and covenants consistent with second lien debt, and bears interest at customary second lien rates.

In the last 12 months, independent of this Transaction, Trican has monetized more than $30 million of assets, approximating their net book value, that were either non-core, or not expected to contribute cash flow to the future business of Trican. As with the prior asset sales, Trican intends to use the net cash proceeds from the Transaction to initially reduce its outstanding debt and will evaluate all opportunities for alternative reinvestment, including continued allocation to share repurchases under the previously announced NCIB.

About Trican

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 further information should be directed to:

Dale Dusterhoft
President and Chief Executive Officer
E-mail: [email protected]

Robert Skilnick
Chief Financial Officer
E-mail: [email protected]

Phone: (403) 266-0202
Fax: (403) 237-7716
2900, 645 - 7th Avenue S.W.
Calgary, Alberta T2P 4G8

Please visit our website at www.tricanwellservice.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/51520

Comment On!

140
Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to CanadianInsider.com (via Easy Blurb).