Cathedral Energy Services Ltd. Announces Closing of Bought Deal Financing Including Exercise in Full of the Over-Allotment Option

/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./

CALGARY, Feb. 15, 2017 /CNW/ - Cathedral Energy Services Ltd. ("Cathedral" or the "Company") (TSX:CET) is pleased to announce the closing of its previously announced bought deal public offering of 11,500,000 common shares of the Company at a price of $1.12 per share, which includes 1,500,000 common shares pursuant to the exercise in full of the over-allotment option, for gross proceeds of $12,880,000 (the "Offering"). Concurrent with the closing of the Offering, certain directors and officers of Cathedral purchased a total of 1,116,071 common shares at a price of $1.12 per share on a private placement basis for gross proceeds of approximately $1,250,000 (the "Concurrent Private Placement"). The gross proceeds from the Offering and Concurrent Private Placement totaled approximately $14,130,000.

GMP FirstEnergy acted as sole underwriter for the Offering.

The net proceeds of the Offering and Concurrent Private Placement will initially be used to repay bank indebtedness and then fund ongoing working capital requirements driven by increased business activity, increase capacity through funding equipment upgrades and capital expenditures, and for other general corporate purposes.

The securities offered have not been, and will not be, registered under the U.S. Securities Act or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.

ABOUT CATHEDRAL ENERGY SERVICES LTD.

Cathedral, based in Calgary, Alberta, is incorporated under the Business Corporations Act (Alberta) and operates in the U.S. under Cathedral Energy Services Inc.  The Company is publicly traded on the Toronto Stock Exchange under the symbol "CET".  Cathedral is a trusted partner to North American energy companies requiring high performance directional drilling services. We work in partnership with our customers to tailor our equipment and expertise to meet their specific geographical and technical needs.  Our experience, technologies and responsive personnel enable our customers to achieve higher efficiencies and lower project costs. For more information, visit www.cathedralenergyservices.com.

ADVISORY

This press release contains certain statements or disclosures relating to Cathedral, the Offering and the Concurrent Private Placement that are based on the expectations of Cathedral as well as assumptions made by and information currently available to Cathedral which may constitute forward-looking information under applicable securities laws. In particular, statements related to the use of proceeds of the Offering and the Concurrent Private Placement contain forward-looking information. Assumptions have been made with respect to, among other matters, general economic and market conditions. Many factors could cause the performance or achievement by Cathedral to be materially different from any that are expressed or implied by such forward-looking information, including without limitation, general economic and market conditions, industry conditions, market and commodity price volatility and the Company's financial and operational performance and results. Additional information on these and other factors that could affect Cathedral's operations and financial performance are included in Cathedral's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website (www.sedar.com). Cathedral disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

SOURCE Cathedral Energy Services Ltd.

For further information: Requests for further information should be directed to: P. Scott MacFarlane, President and Chief Executive Officer or Michael F. Hill, Chief Financial Officer: Cathedral Energy Services Ltd., 6030 3 Street S.E., Calgary, Alberta T2H 1K2, Telephone: 403.265.2560, Fax: 403.262.4682, www.cathedralenergyservices.com

RELATED LINKS
http://www.cathedralenergyservices.com

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