Hyduke Provides Update on Strategic Review
NISKU, AB, Nov. 9, 2012 /CNW/ - Hyduke Energy Services Inc. ("Hyduke" or the "Company") (TSX:HYD) provides an update on the status of the strategic review process initiated last month.
As reported earlier, Hyduke's Board of Directors is reviewing a number of strategic alternatives with the objective of enhancing shareholder value. The Board has formed a Special Committee comprised of independent directors and have engaged Sequeira Partners ("Sequeira") as a financial advisor.
Hyduke and Sequeira are currently in the midst of a process to actively solicit strategic and financial acquirers and investors. Hyduke has prepared confidential information on the investment opportunity and has distributed this to a number of interested parties subject to confidentiality agreements. Additionally, a secure data room has been established for the purpose of providing more detailed confidential information to potential acquirers.
While the process to solicit strategic investors is in its early stages, Hyduke is pleased to report that there are currently a number of parties who have entered into confidentiality agreements, are reviewing information and assessing the opportunity. The interested parties range from larger strategic companies in the oil and gas industry to financial investors.
Hyduke's President and CEO, Gordon McCormack states that, "Hyduke is conducting this review of strategic alternatives with a serious commitment to find strategic options to provide additional value to all shareholders. Hyduke is determined to explore all options that are available to the Company and we are approaching the process with a thoroughness that reflects our intent to maximize the value of the company over the short to medium term."
Based on the early results of the strategic alternative process, further analysis of Hyduke value items, and for all the reasons set out in the Directors' Circular, the Board is reinforced in its belief that the Do All Industries Ltd. ("DoAll") unsolicited bid of $0.83 per common share is grossly inadequate, not in the best interests of Hyduke shareholders and remains firm in their unanimous recommendation to reject the offer. Additionally, Hyduke has reviewed all DoAll public communications to Hyduke shareholders and firmly disagrees with their statements
Hyduke expects to have more detailed information available on the strategic review process as it proceeds throughout this month.
Hyduke is an integrated oilfield services company with over thirty years experience in the manufacture, repair and distribution of oilfield equipment and supplies in Canada and worldwide. Hyduke specializes in providing customized, integrated solutions to the drilling and well service industries including:
- Turn-Key Equipment - drilling rig and service rig packages including in-house design, engineering and drafting, major component procurement and overall project management;
- Life Cycle Management - inspection, certification, service, repair and supply services throughout the operating life of the drilling or well service rig; and
- Single Source Supply - providing new capital equipment, repair and maintenance on existing capital equipment and supply of operating consumables.
Hyduke is headquartered in Nisku, Alberta and has facilities in Edmonton, Calgary, Nisku, Leduc, Red Deer and Lloydminster, Alberta and Houston, Texas, USA.
Hyduke operates in three operating segments. The Drilling Equipment segment includes manufacture and repair of land based drilling rigs and drilling rig structures, supply and repair of drilling rig equipment, procurement and distribution of drilling supplies, supply and service of pneumatic controls, engineering and design of drilling rigs and inspection and certification of drilling rig equipment. The Well Service Equipment segment includes manufacture and repair of well service rigs, mobile and skid mounted pump units and other well service equipment, procurement and distribution of well servicing supplies, supply and service of pneumatic controls, engineering and design of well service rigs and inspection and certification of well service equipment. The Other Oilfield Services segment includes manufacture and distribution of cased hole and overburden drill bits and drilling systems, custom and production machining services, distribution and repair of truck-mounted equipment including cranes, winches and dump boxes and industrial sandblasting, painting and collision repair.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this News Release.
Forward Looking Statements
This report contains certain forward-looking statements under the heading "Outlook" and elsewhere concerning future events or the Company's operations, anticipated financial performance, business prospects and strategies of Hyduke. Forward-looking information typically contains statements with words such as "anticipate", "believe", "estimate", "expect", "plan", "intend" or similar words suggesting future outcomes or outlooks on, without limitation, estimates of business activity, supply and demand for the Company's products, the estimated amounts and timing of capital expenditures, anticipated future debt levels, or other expectations, beliefs, plans, objectives, assumptions or statements about future events or performance. Readers are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties both general and specific that may cause actual future results to differ materially from those contemplated and contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur. These factors may affect anticipated earnings or assets and include, but are not limited to: industry activity levels, market liquidity, customer credit risk, competition, oil and gas prices, product liability, fixed price contracts, development of new products, uninsured and underinsured losses, access to additional financing, source of supply of raw material and third party components, availability of key personnel, agreements and contracts, government regulations, foreign exchange exposure, interest rate risk, international scope of operations, environmental health and safety regulations and Hyduke's anticipation of and success in managing the risks implied by the foregoing. The Company cautions that the foregoing list of important factors is not exhaustive. The Company believes that the expectations reflected in the forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. The forward-looking statements in this report speak only as of the date of this report. Hyduke undertakes no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required pursuant to applicable securities legislation.
SOURCE: Hyduke Energy Services Inc.For further information:
Chair of the Board
Gordon R. McCormack
President and Chief Executive Officer