SERVICE SECTOR / Serval Integrated Energy Services Contracts with Yorkton
Securities to Raise up to $12 Million Through a Private Placement of
Convertible Debentures
CALGARY, Nov. 9 /CNW/ - Serval Integrated Energy Services (SI.UN) has
entered into an agreement with Yorkton Securities Inc. to lead a private
placement of Special Notes of Serval on a best efforts basis to a maximum of
$12 million. The Special Notes will automatically exchange into Convertible
Debentures which will bear interest at 7.5 per cent payable quarterly and
which may be converted into units of Serval on a basis equivalent to $4.25 per
unit.
Closing of the offering of Special Notes is expected on or before
November 23, 1998. A prospectus, to qualify the issuance of the underlying
Convertible Debentures on exchange of the Special Notes, will be filed in the
selling provinces of Canada as soon as possible following the closing of the
offering.
Serval intends to use the proceeds of this private placement to
strengthen its working capital position and for capital expenditures.
''The proceeds of this private placement will allow Serval to continue to
build a strong integrated services company that aligns itself with the
interests of Western Canadian oil and gas producers. We are committed to help
producers drive down their costs,'' said Jay Lyons, Serval's President and
Chief Executive Officer. ''Serval is fortunate that its integrated energy
services are easily applied to the busy shallow natural gas drilling sector,
support for deep drilling programs, the construction of pipelines and the
fabrication and installation of production systems needed throughout Western
Canada.''
Serval Integrated Energy Services provides oilfield services in Canada
and internationally through four operating groups - Well Services,
Environmental Services, Construction Services and Production Services. Serval
units are listed for trading on the Alberta Sock Exchange under the trading
symbol SI.UN. Currently there are 4,778,160 Serval units outstanding. |
