Denison Energy to Acquire Calfrac Well Services Ltd.

Denison Energy has exercised a previously announced option to purchase all of the shares of Calfrac Well Services Ltd. for an aggregate purchase price of approximately $227.5 million, less indebtedness of approximately $83.6 million, for a net purchase price of approximately $143.9 million.

Denison Energy will pay the net purchase price by issuing 7,427,039 common shares and making a cash payment of $28,779,760.87 to the shareholders of Calfrac. The funding required to finance the cash portion of the purchase price was obtained through the previously announced public offering of 8,064,520 common shares at a price of $15.50 per common share for gross proceeds of approximately $125 million. The net proceeds of such offering of approximately $116.3 million, after deducting the underwriters' fees and expenses of the offering, will to be used by Denison Energy as follows: (i) approximately $28.8 million to pay the above-mentioned 20% of the purchase price of the shares of Calfrac; (ii) approximately $58.4 million to repay indebtedness of Calfrac; and (iii) approximately $29.1 million will be added to working capital and used for general corporate purposes.

The closing of the acquisition of Calfrac is expected to occur on March 24, 2004. Denison Energy will immediately thereafter merge with and change its name to Calfrac Well Services Ltd. and commence trading under the trading symbol CFW with 17,107,277 common shares outstanding.

Calfrac provides specialized oilfield services to exploration and production companies designed to increase the production of hydrocarbons from wells drilled throughout western Canada and in the Rocky Mountain region of the United States.
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