/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES./
CALGARY, May 31 /CNW/ - IROC Energy Services Corp. ("IROC" or the "Corporation") (TSX Venture Exchange: "ISC") announces the renewal of its existing credit facilities with a syndicate of three Canadian chartered banks (the Credit Agreement"). The banking syndicate includes National Bank of Canada, Alberta Treasury Branches and Canadian Western Bank.
The Credit Agreement provides the Corporation with a $7.5 million extendible demand revolving operating loan credit facility ("Operating loan") and a $25 million extendible revolving term acquisition loan facility ("Acquisition loan") for a total loan availability of $32.5 million (together referred to as "the Facilities"). The Facilities have an accordion feature which provides the Corporation with an ability to increase the maximum combined borrowings under the Facilities to up to $52.5 million, subject to the approval of the lenders. Current borrowings under the Facilities total $18.0 million. The Facilities are for a 364 day committed term until May 27, 2011, the term-out date. No principal payments are required under the facilities until the term-out date which may be extended for a further 364 day period upon approval by the banks. If the Facilities are not renewed beyond the term out date, the Operating Loan is immediately due and payable and the principal outstanding on the Acquisition loan becomes payable in 24 equal monthly installments over the following two year period. Interest on both facilities is payable monthly.
About IROC Energy Services Corporation
IROC Energy Services Corp. is an Alberta oilfield services company that, through the IROC Energy Services Partnership, provides a diverse range of products, services and equipment to the oil and gas industry that are among the newest and most innovative in the WCSB. IROC combines cutting-edge technology with depth of experience to deliver a product and services offering in three core areas: Well Servicing & Equipment, Downhole Temperature & Pressure Monitoring Tools, and Rental Services. For more information on IROC Energy Services Corp. visit our website at www.iroccorp.com.
Certain statements contained in this press release may constitute forward looking statements concerning, among other things, expected revenues, expected expenses, profits, developments and strategies for IROC's operations all of which are subject to certain risks, uncertainties and assumptions. These forward looking statements are identified by their use of terms and phrases such as "anticipate", "continue", "estimate", "expect", "may", "will", "projected", "should", "believe" and other similar terms and phrases. By its nature, such forward looking information involves 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 statements. These risks include, but are not limited, to the risks associated with the oil and gas industry generally, fluctuating prices in crude oil and natural gas, changes in drilling activity, general global economic, political and business conditions, weather conditions, regulatory changes and availability of products, qualified personnel and manufacturing capacity and raw materials. If any of these uncertainties materialize, or if assumptions are incorrect actual results may vary materially from those expected. IROC relies on litigation protection for any forward looking statements.
This press release is not for dissemination in United States or to any United States news services. The Common Shares of IROC have not and will not be registered on the United States Securities Act of 1933, as amended (the "United States Securities Act") or any state securities laws and are not offered or sold in the United States or to any US person except in certain transactions exempt from the registration requirements of the United States Securities Act and applicable state securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE IROC Energy Services Corp.
For further information: For further information: IROC Energy Services Corp.: Mr. Thomas M. Alford, President and CEO or Mr. Ryan A. Michaluk, Chief Financial Officer, Telephone: (403) 263-1110, Email: email@example.com