Savanna Energy Services Corp. Announces $110.3 Million Bought Deal Financing



    
    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION IN
    THE U.S./

    TSX - SVY
    

    CALGARY, May 11 /CNW/ - Savanna Energy Services Corp. ("Savanna" or the
"Company") is pleased to announce that it has entered into an agreement with a
syndicate of underwriters led by Peters & Co. Limited, and including
FirstEnergy Capital Corp., TD Securities Inc., RBC Capital Markets and Cormark
Securities Inc., (the "Underwriters"), pursuant to which the Underwriters have
agreed to purchase, on a bought deal basis, 17,500,000 common shares ("Common
Shares") of Savanna at a price of $6.30 per Common Share for aggregate gross
proceeds of $110.3 million. The Underwriters will have the option to purchase
up to an additional 15 percent of the total issue of Common Shares,
exercisable in whole or in part at the sole discretion of the Underwriters up
to 30 days after the closing date, at the same issue price, to cover
over-allotments, if any. If such option is exercised in full, the aggregate
gross proceeds of the offering will be $126.8 million.
    Proceeds of the offering will initially be used to pay down the Company's
bank debt and then will be used for general corporate purposes. The Common
Shares will be offered in all provinces of Canada by way of a short form
prospectus and in the U.S. on a private placement basis pursuant to exemptions
from registration requirements. Closing is expected to occur on or about June
3, 2009 and is subject to certain customary conditions including, but not
limited to, the receipt of all necessary approvals including the approval of
the Toronto Stock Exchange.

    Savanna Energy Services Corp. is a leading North American contract
drilling and oilfield services company providing a broad range of drilling,
well servicing and related services with a focus on fit for purpose
technologies for the North American market and industry-leading aboriginal
relationships.

    The securities offered have not been and will not be registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or applicable exemption from the
registration requirements. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there by any sale of the
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful.

    ADVISORY: This press release contains forwarding looking statements. More
particularly, this press release contains statements concerning the
anticipated closing date of the offering and the anticipated use of the net
proceeds of the offering. Although Savanna believes that the expectations
reflected in these forward looking statements are reasonable, undue reliance
should not be placed on them because Savanna can give no assurance that they
will prove to be correct. Since forward looking statements address future
events and conditions, by their very nature they involve inherent risks and
uncertainties. The closing of the offering could be delayed if the Company is
not able to obtain the necessary regulatory and stock exchange approvals on
the timelines it has planned. The offering will not be completed at all if
these approvals are not obtained or some other condition to the closing is not
satisfied. Accordingly, there is a risk that the offering will not be
completed within the anticipated time or at all. The intended use of the net
proceeds of the offering by Savanna might change if the board of directors of
the Company determine that it would be in the best interests of the Company to
deploy the proceeds for some other purpose, such as an acquisition.
    The forward looking statements contained in this press release are made
as of the date hereof and the Company undertakes no obligations to update
publicly or revise any forward looking statements or information, whether as a
result of new information, future events or otherwise, unless so required by
applicable securities laws.

    
    The Toronto Stock Exchange has neither approved nor disapproved the
    contents of this press release.
    





For further information:

For further information: Ken Mullen, President & Chief Executive
Officer, Darcy Draudson, Vice President, Finance and Chief Financial Officer,
Telephone: (403) 503-9990, Fax: (403) 267-6749

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Savanna Energy Services Corp.

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