SERVICE SECTOR / Peak Energy Services Ltd. Closes Acquisition of
Zeta Oilfield Rentals Ltd.
TSE SYMBOL: PES
JUNE 3, 1998
CALGARY, ALBERTA--Peak Energy Services Ltd. ("Peak") has closed
its previously announced acquisition of Zeta Oilfield Rentals Ltd.
("Zeta") of Nisku, Alberta. The final purchase price for Zeta
totalled $7,975,000 consisting of $6,600,000 cash and 366,667
common shares of Peak at a deemed price of $3.75. The cash
portion of the acquisition was financed with existing credit
facilities. This acquisition is effective June 1, 1998. The
purchase price is subject to certain post closing adjustments.
Zeta has an extensive fleet of drilling, completions, work-over
and production rental equipment. The Zeta acquisition will be
complimentary to Peak's existing solids control and production
rental divisions. Zeta will also provide Peak with a broader
geographic presence in Western Canada through its head office in
Nisku, Alberta and its field operation in Slave Lake, Alberta.
Through this acquisition, Peak will continue to establish itself
as the dominant provider of ancillary services to the oil and gas
industry.
For the six months ended April 30, 1998, Zeta generated revenue of
$5.12 million and EBITDA of $2.18 million. For the period June 1,
1998 to December 31, 1998, we expect Zeta will generate revenue of
$4.7 million and EBITDA of $1.8 million. This will add an
estimated $0.05 EBITDA per share and $0.01-$0.02 earnings per
share to Peak in 1998. In 1999, Zeta is expected to generate
$0.12 EBITDA per share and $0.04 earnings per share.
Peak Energy Services Ltd. is a diversified energy services company
providing oilfield rental equipment and related services to the
petroleum industry in Western Canada. Peaks' shares are listed on
the Toronto Stock Exchange under the symbol "PES".
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