CALGARY, ALBERTA--(Marketwire - May 15, 2012) - CanElson Drilling Inc. ("CanElson") (CDI.TO - News) announces that it has closed the previously announced acquisition of CanGas Solutions Ltd. ("CanGas"), a company that provides containerized natural gas transport services in Alberta and Saskatchewan. These services are used to capture and monetize raw natural gas that is being flared at oil wells not tied into gathering systems, and to transport processed natural gas for use as a fuel to displace diesel ("bi-fuel"). CanElson continues to believe bi-fuel technology will not only reduce the environmental impact of exhaust emissions, but also reduce fuel costs as the lower priced natural gas is replacing diesel which has an estimated equivalent natural gas value of more than $30 per thousand cubic feet. CanElson has issued 2,052,239 common shares for 100% of the shares of CanGas.
CEO and President Randy Hawkings states "The addition of the experienced CanGas team provides greater experience and industry knowledge to our in-house natural gas bi-fuel team and should allow us to further accelerate, as well as efficiently manage the compression and transport supply chain, within our existing initiatives in the areas of natural gas transport, flare gas conservation and bi-fuel conversions. CanGas is currently transporting raw natural gas from multiple wells enabling the production of oil that might otherwise be shut in. CanGas was also CanElson's technical partner in bi-fuel trials on mechanical rigs last summer, and they additionally supply technical expertise to a large-scale containerized natural gas transport project in Atlantic Canada. We are very pleased to welcome the CanGas team to CanElson for the further development of these exciting environmentally responsible energy technologies."
CanElson now expects to invest approximately $19 million of additional capital expenditures into CanGas to grow its natural gas transport and bi-fuel capabilities. The investment is expected to be focussed on a combination of the purchase of additional equipment for rich gas transport ("RGT") and bi-fuel related equipment for the conversion of oilfield services equipment. CanGas Solutions Inc., as the newly amalgamated company, will be run as a separate but wholly owned subsidiary of CanElson.
This press release contains certain statements or disclosures relating to CanElson that are based on the expectations of CanElson as well as assumptions made by and information currently available to CanElson which may constitute forward-looking information under applicable securities laws. In particular, statements pertaining to CanElson's belief that bi-fuel technology will reduce the environmental impact of exhaust emissions and reduce fuel costs and intention to invest $19 million into CanGas to grow its natural gas transport and bi-fuel capabilities contain forward looking information. Many factors could cause the performance or achievement by CanElson to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking information. CanElson's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. CanElson 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.