Great Prairie Energy Services Inc. Announces 2014 Second Quarter Results

CALGARY, ALBERTA--(Marketwired - Aug. 29, 2014) -

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Great Prairie Energy Services Inc. (TSX VENTURE:GPE) ("Great Prairie" or the "Company") is pleased to announce its financial results for the three and six month periods ended June 30, 2014. A copy of the second quarter 2014 financial statements ("Financial Statements") and the related management discussion and analysis ("MD&A") are available under the Company's profile on SEDAR at www.sedar.com.

Second Quarter Highlights:

• Revenue of $3.6 million for the three months ended June 30, 2014.
  
  
• EBITDAS of $0.5 million for the three months ended June 30, 2014.
  
  
• On May 15, 2014, Great Prairie acquired certain oilfield service assets and related operations in Alberta and Saskatchewan for $10.0 million cash (the "Acquisition"). The Acquisition includes two frac fluid plants, oilfield rentals and hauling operations in Drumheller, Sundre and Valleyview, Alberta as well as Kindersley, Saskatchewan. The Acquisition complements Great Prairie's existing operations and adds three new key areas of operations.
  
  
• Increased total bank credit facility from $8.0 million to $20.0 million.
  
  
• Acceptance as a member by the Petroleum Services Association of Canada ("PSAC").
  
  

The second quarter of each calendar year is distinguished from other quarters by annual spring breakup, which typically occurs in the Company's operating areas from mid-March to mid-May. Spring breakup creates the most challenging operating quarter for the Company due to reduced activity levels resulting from the limited ability to move heavy oilfield equipment because of road closures caused by wet weather and ground thawing. As a result, the second quarter and first half of the year are characteristically the Company's weakest, with approximately 25-30% of annual EBITDAS being generated in the first half of the year. As previously disclosed, management estimates that Great Prairie would have recorded, on a pro forma basis, approximately $12 million in total adjusted EBITDAS for the year ended December 31, 2013 including the Acquisition. Management believes that the Company's 2014 operational and financial outlook remains positive.