CALGARY, Feb. 24 /CNW/ - In November of 2006 Canyon issued 125,000
warrants to Frac Rite Services Ltd. as partial payment for the purchase of
certain intellectual property described as Light Weight Proppant ("LWP").
Canyon was subsequently awarded a Canadian Patent which applies to any
stimulation of any oil or gas well which involves the introduction of any
non-metallic proppant at concentrations which create a partial mono-layer,
whether in a gas or liquid.
Patents are also pending the in United States and Australia.
To date Canyon has stimulated over 675 wells in western Canada, using our
Frac Rite continues to provide expertise to enhance the effectiveness of
Light Weight Proppant in the stimulation of oil and gas reservoirs and
therefore Canyon has agreed to change the vesting terms and exercise price of
the warrants previously issued as follows:
a) The dates the warrants vest shall change from November 8th, 2007,
November 8th, 2008 and November 8th, 2009 (one-third of the warrants
issued being exercisable on each date), to February 11th, 2010,
February 11th, 2011 with the final third exercisable on October 1st,
b) The exercise price shall be reduced from $4.97 per common share to
$1.20 per common share.
Frac Rite Services Ltd. is not considered an insider of Canyon under the
Alberta Securities Act and the transaction described above was negotiated at
We seek safe harbor.
For further information:
For further information: Brad Fedora, President, Canyon Services Group
Inc., No. 1600, 510-5th St. S.W., Calgary, Alberta, T2P 3S2, Phone: (403)
355-2300, Fax (403) 355-2211