CALGARY, ALBERTA–(Marketwired – Sept. 12, 2016) – Ceiba Energy Services Inc. (“Ceiba” or the “Company”) (TSX VENTURE:CEB), a growing environmental fluids processing and disposal company, announced today that it has initiated a process to identify, examine and consider a range of strategic alternatives available to the Company with a view to enhance shareholder value. The Company has identified a number of growth opportunities, both organic and by way of acquisition, which would require significant capital over the next few years. In the current public market conditions, pursuing these opportunities may require alternative sources of capital. Therefore, the strategic review may include, among other alternatives, assessing different methods of expanding Ceiba’s asset base, by way of financing, acquisition, merger, joint venture or other initiatives, or any combination of the foregoing. In each case, the objective is to establish a well-capitalized entity that can best develop the future opportunities available to the Company, with a view to enhancing value for its shareholders.
Ceiba currently owns nine water disposal and terminalling facilities in Alberta and is constructing a new Class 1B water disposal facility in the Kaybob, Alberta area. The Company recently announced record Q2 2016 financial results including record quarterly revenue, cash flow from operations and adjusted earnings before interest, tax, depreciation and amortization. Ceiba has a flexible balance sheet, having ended the second quarter with $3.6 million in cash and cash equivalents and $4.9 million of negative net working capital, and has $5.0 million of its credit facility available.
Ceiba’s Board of Directors has determined that it is timely to evaluate strategic alternatives aimed at enhancing shareholder value. Accordingly, Peters & Co. Limited has been engaged by the Company as its exclusive financial advisor to assist in this comprehensive review and analysis, and a Special Committee of the Board, consisting of directors Brian Petersen (Chair), Ralph Hesje and Ron Sifton, has been formed to oversee this process.
The Company has not set a definitive schedule to complete its identification, examination and consideration of strategic alternatives, and no decision on any particular alternative has been reached at this time. The Company does not intend to disclose developments with respect to this process unless and until the Board has approved a definitive transaction or other course of action or otherwise deems that disclosure of developments is appropriate or otherwise required by law. There can be no assurance that this review will result in a transaction or agreement, or if a transaction is undertaken, as to its terms or timing.
Management Update
In recognition of his efforts the Board of Directors is pleased to announce that Richard Lane has been appointed Interim Chief Executive Officer (“CEO”) of the Company. Mr. Lane will retain the position of Chief Operating Officer of Ceiba and assumes the CEO position which had previously been vacant.
About Ceiba Energy Services Inc.
Ceiba provides specialized services to the energy sector, specifically to companies involved in the exploration, extraction and production of oil and natural gas in Western Canada. Ceiba develops and constructs facilities in proximity to its customers to provide treatment of crude oil emulsion, terminalling, storage and marketing of oil and disposal of production water.
Reader Advisory
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Forward-looking statements
Certain information regarding Ceiba in this news release, including management’s assessment of its future development plans, Ceiba’s intention to carry out a strategic alternative review process, the potential outcome of such process and the intended value maximization that Ceiba believes may result from such process, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with facility construction and oilfield services operations, general risks associated with oil and gas exploration, development, production, marketing and disposal of waste, loss of markets, environmental risks, competition from other service providers, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward‐looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Ceiba’s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward‐looking statements or information contained in this news release are made as of the date hereof and Ceiba does not undertake any obligation to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Richard Lane
Interim CEO and COO
403-262-2783
Peter Cheung
CFO and Corporate Secretary
403-262-2783