Savanna Energy acquires drilling rigs in the United States

    CALGARY, June 16 /CNW/ - Savanna Energy Services Corp. ("Savanna") (TSX:
SVY) is pleased to announce it has completed the acquisition of all of the
assets of a privately-held drilling company, for a purchase price of
$USD59.0 Million.
    The acquisition includes five drilling rigs plus associated support
equipment. The drilling rigs consist of three 1,000 HP doubles rated for
drilling to depths of up to 12,500 feet and two 1,500 HP triples rated for
depths of up to 15,000 feet. The acquisition increases Savanna's drilling
fleet to 104 drilling rigs including 13 in the United States. In addition, as
previously announced, two more rigs will be moving to Texas over the next
two months.
    The operational focus for the purchased equipment is primarily in the
ArkLaTex region which includes the increasingly active Haynesville shale and
Cotton Valley resource plays. The five rigs were all built over the last
two years. The purchase includes a leased operations facility and personnel
that will be used to support the go-forward Savanna operations in the ArkLaTex
    This acquisition reinforces Savanna's growing position in the United
States market and adds significant additional scale in the United States to
complement Savanna's current drilling presence.

    Savanna is a Canadian-based drilling and well servicing growth company
focused on the application of unique drilling technologies, the development of
preferential Aboriginal partnership structures to facilitate this growth and
expansion of its service offerings both in Canada and internationally.

    Cautionary Statement Regarding Forward-Looking Information and Statements

    Certain statements and information contained in this press release,
including the timing of moving rigs to Texas, may constitute "forward-looking
information" within the meaning of applicable Canadian securities legislation
and "forward-looking statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995.
    These forward-looking statements are based on certain assumptions and
analysis made by Savanna in light of its experience and its perception of
historical trends, current conditions and expected future developments,
including the completion of rig modifications on a timely basis and Savanna's
ability to attract the necessary personnel, as well as other factors it
believes are appropriate in the circumstances. However, whether actual
results, performance or achievements will conform to Savanna's expectations
and predictions is subject to a number of known and unknown risk and
uncertainties which could cause actual results to differ materially from
Savanna's expectations.
    Consequently, all of the forward-looking information and statements made
in this press release are qualified by this cautionary statement and there can
be no assurance that the actual results or developments anticipated by Savanna
will be realized or, even if substantially realized, that they will have the
expected consequences to or effects on Savanna or its business or operations.
Except as may be required by law, Savanna assumes no obligation to update
publicly any such forward-looking information and statements, whether as a
result of new information, future events, or otherwise.

    %SEDAR: 00019742E

For further information:

For further information: Savanna Energy Services Corp., Ken Mullen,
President and CEO; Darcy Draudson, Chief Financial Officer; Dwayne LaMontagne,
Vice President, Finance, Tel: (403) 503-9990, Fax: (403) 267-6749,

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Savanna Energy Services Corp.

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