Savanna Energy Services Corp. Announces the Elimination of Dividend and Operational Update

CALGARY, ALBERTA--(Marketwired - March 26, 2015) - The Board of Directors of Savanna Energy Services Corp. (TSX:SVY) ("Savanna" or "the Company") has decided to eliminate the quarterly dividend of $0.03 per share on Savanna's common shares after payment of the previously declared dividend to shareholders of record on March 31, 2015 and payable on April 15, 2015.

Operationally, the first quarter has been unfolding as expected. Operating days in Canadian and US drilling, as well as operating hours in Canadian well servicing, are expected to be 40-50% lower than in Q1 2014, while U.S. well servicing operating hours should remain relatively flat compared to Q1 2014.

In Australia, one drilling rig came off contract in mid-February while the remaining four drilling rigs, nine workover rigs and three flushby units remain on contracts with expiries ranging between late 2015 and late 2017.

Savanna remains focused on managing its balance sheet and costs in all aspects of its business and leveraging its assets to maintain and gain market share. In addition to large cuts in capital spending, we are aggressively reducing operating and administrative expenses to efficiently manage the level of assets and equipment Savanna currently believes will be utilized for the remainder of 2015, while maintaining the ability to ramp up utilization as demand for Savanna's services increases. The following is an update on some of the key initiatives in this regard:

• Non-rig related salaried positions have been reduced by 38% from where they were at the end of 2014.
• The organizational structure is being flattened to reduce layers of management that were not required and is being further restructured for the current environment.
• Closure of four field locations and plans to consolidate two other locations as we continue to lower the Company's cost structure.
• Unutilized equipment is being shared across operational divisions to increase utilization and decrease operating expenses and maintenance capital.
• Evaluating the sale of certain non-core assets.

Savanna's net 2015 capital program estimate remains at $45.8 million and will continue to be evaluated in light of further changes to anticipated activity levels as 2015 unfolds.