Acquisition of Wellco Service Rig Division Complete

Central Alberta Well Services Corp. has closed its previously announced transaction to acquire all of the assets and business of the Service Rig Division of Wellco Energy Services Partnership. The total purchase consideration paid by CWC to the Wellco Partnership for the assets and business of the Service Rig Division was $11.31 million, which was drawn from the company's $63 million revolving credit facility.

The acquisition adds nine 1,500-meter service rigs and related equipment to CWC's current fleet of 26 service rigs. CWC is also expected to take delivery of three additional service rigs currently under construction, bringing CWC's total operating service rig fleet to 38 units by the end of the first quarter of 2008. In addition, the acquisition enhances CWC's geographical presence in southern Alberta with the newly acquired operating facility in Brooks, Alberta. CWC has also made offers to employ all of the employees of Wellco's Service Rig Division.

Darryl E. Wilson, President and CEO of CWC stated "We are very pleased with this transaction which brings an experienced management team and qualified field staff to CWC that enables us to extend our geographical reach to Brooks, Alberta and the surrounding region. The addition of the operating facility at Brooks accelerates the expansion strategy of CWC's core well servicing business and facilitates cross-selling our other complementary lines of service including coil tubing, snubbing, nitrogen pumping, well testing and equipment rental services to our existing and new customers."


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