CALGARY, ALBERTA--(Marketwire - March 20, 2013) - Essential Energy Services Ltd. (TSX:ESN) ("Essential") announced today that it has received approval from the Toronto Stock Exchange (the "TSX") to implement a normal course issuer bid ("NCIB") for Essential common shares ("Shares"). Any Share purchases by Essential pursuant to the NCIB will be for cancellation.
Under the NCIB, Essential may purchase up to 12,182,508 of its issued and outstanding Shares on the open market through the facilities of the TSX, representing 10 percent of the public float. Essential has 124,021,468 Shares issued and outstanding. As required by TSX policy, the maximum number of Shares that may be purchased on one day may not exceed 56,113 Shares, which is 25 percent of the six month average daily trading volume of Shares on the TSX, at February 28, 2013. The price which Essential will pay for any Shares purchased will be the prevailing market price of such Shares on the TSX at the time of purchase.
The NCIB will commence on March 25, 2013, and will terminate on March 24, 2014 or at such earlier date as the NCIB is completed or terminated at the option of Essential.
Essential plans to enter into an Automatic Share Purchase Plan ("ASPP") with a broker for the purpose of buying Shares through Essential's regularly scheduled blackout periods. Such purchases will be determined by the broker in its sole discretion, based on parameters that are established by Essential prior to any blackout period. All other purchases under the NCIB will be at the discretion of Essential.
The Board of Directors believes that the Shares currently trade in a price range that does not adequately reflect the underlying value of Essential's assets and operations. As a result, Essential believes that the purchase of its outstanding Shares is an attractive investment. In addition, the Board of Directors may use the NCIB to offset the dilutive effects of the exercise of share options granted by Essential under the share option plan.
Essential is a growth-oriented, dividend paying corporation that provides oilfield services to producers in western Canada for producing wells and new drilling activity. Essential operates the largest coil tubing well service fleet in Canada with 46 coil tubing rigs and a fleet of 55 service rigs. Essential also sells, rents and services downhole tools and equipment including the Tryton Multi-Stage Fracturing System. Further information can be found at www.essentialenergy.ca.
The TSX has neither approved nor disapproved the contents of this press release.