CALGARY, Alberta, April 29, 2014 /PRNewswire/ -- GASFRAC Energy Services Inc. ("GASFRAC" or the "Company") (TSX:GFS) and Nanes Balkany Partners I LP ("Nanes Balkany"), the beneficial owner of approximately 5.4% of GASFRAC's common shares, today announced that they have entered into a settlement agreement (the "Agreement") under which it was agreed to nominate six new individuals to be elected to GASFRAC's Board of Directors, including two nominees put forward by Nanes Balkany, one of the Company's largest shareholders. GASFRAC's seven incumbent directors will not seek re-election and will step down at the annual meeting of shareholders scheduled to be held on May 27, 2014.
Under the terms of the Agreement, GASFRAC's slate of nominees to the Board includes: Julien Balkany and Pierre Jungels (Nanes Balkany's nominees) and Dale Tremblay, James Hill, Larry Lindholm, and Mark Williamson. Mr. Hill, CEO of the Company will be promoted to the Board to assure continuity.
James Hill, CEO of GASFRAC, said, "We look forward to working with the new board to implement our cohesive and refocused strategic plan to expand our revenue base. I would like to thank our departing Board members for their contributions in supporting the building of the Company from its start-up through successful commercialization of this innovative technology."
Julien Balkany, Managing Member and Chief Investment Officer of Nanes Balkany Partners, stated, "Our goal is to maximize shareholder value by eliminating the disconnect between GASFRAC's current share price and the underlying value of its ground breaking environmentally-friendly waterless fracking technology. We will work diligently with the other directors to ensure GASFRAC broadens and increases its customer base by, amongst other things, focusing on geographic areas where the ineffectiveness or scarcity of water provide the Company with a natural competitive advantage. The Company also has a direct revenue opportunity by continuing to expand its fracturing fluid capabilities and putting to work current sets of unused equipment. We look forward to working closely with GASFRAC's other directors and management team."
Biographies of the newly nominated Directors:
Mr. Tremblay is an independent businessman with over twenty-five years of experience in the oilfield services industry. He was Chairman and Chief Executive Officer of Western Energy Services Corp. from 2009 to 2013. From 2005 to 2009 he was President and CEO of Saxon Energy Services Inc. where he guided the management team in the development of the organization from a small operating company to a corporation operating over 70 drilling rigs. Prior to joining Saxon, Mr. Tremblay was Senior Vice President, Finance and CFO at Precision Drilling Corporation, where he was a key member of the management team that led the growth of Precision Drilling Corporation from 1988 to 2005.
Mr. Hill joined GASFRAC in 2010 as Chief Financial Officer, has served as Acting Chief Executive Officer since September 2012, and was appointed Chief Executive Officer in June 2013. Mr. Hill has announced his retirement at the end of 2014 from the Chief Executive role. Prior to joining GASFRAC, Mr. Hill served as President of an oilfield safety services company. Mr. Hill is a Chartered Accountant who articled with KPMG in Calgary and London UK, and has more than 30 years of executive management experience largely with global oilfield services businesses including Nowsco Well Services and Complete Production Services, both fracturing companies.
Mr. Julien Balkany, a French citizen, has served as a Managing Partner and Chief Investment officer of Nanes Balkany Partners LLC, a NY- based activist fund that pursues primarily investments in the oil and gas sector, since January 2008. Previously, Mr. Balkany served as a Director and Vice-Chairman of Toreador Resources Corp. from January 2009 through March 2011, and served as Chairman of the Advisory Board of Stellar Energy Ltd. a London-based investment boutique dedicated to the oil and gas industry beginning in April 2010. Mr. Balkany previously served as Managing Director and Foreign Associate at Nanes Delorme Capital Management LLC, a New York-based broker-dealer firm, from March 2005 through 2012. Mr. Balkany worked at Pierson Capital LLC, a U.S. private investment firm focused primarily on emerging markets, from 2003 to 2005. Prior to that, Mr. Balkany gained significant expertise in the Emerging Markets Debt Capital Markets Group of Bear Stearns & Co., Inc. Mr. Balkany studied Political Science at the Institute of Political Studies (France) and Finance at UC Berkeley. Mr. Balkany is also fluent in French and Spanish.
Mr. Lindholm is a Principal at EnQuest Capital Corporation, a private equity fund investing in oil & gas, oilfield services, SAGD and oil sands facility infrastructure. Mr. Lindholm is the co-founder of Larmar Properties, developing industrial commercial property in Canada and the USA. He co-founded Enerflow Industries, a global manufacturer of advanced oilfield service equipment and controls used in fracturing, cementing and drilling, growing it from a small start-up to a leader in customized oilfield equipment manufacturing employing more than 650 people prior to being sold to National Oilwell Varco in 2012. Prior to founding Enerflow, he worked in the oilfield services industry for over twenty years with companies including Crown Industries, Nowsco Well Services and BJ Services.
Mr. Williamson is a Principal at EnQuest Capital Corporation, a private equity fund investing in oil & gas, oilfield services, SAGD and oil sands facility infrastructure. Mr. Williamson is the co-founder of KI International Ltd., a private company providing concrete piling and foundation drilling services, Mr. Williamson is the co-founder of Larmar Properties, developing industrial commercial property in Canada and the USA. He co-founded Enerflow Industries, a global manufacturer of advanced oilfield service equipment and controls used in fracturing, cementing and drilling, growing it from a small start-up to a leader in customized oilfield equipment manufacturing employing more than 650 people prior to being sold to National Oilwell Varco in 2012. Prior to founding Enerflow, he worked in the oilfield services industry for over twenty years with companies including Crown Industries, Nowsco Well Services, BJ Services and Canadian Fracmaster.
Dr. Pierre Jungels
Dr. Pierre Jungels is currently the Chairman of Velocys plc and Rockhopper exploration plc and is a non-executive director of Baker Hughes. Prior to these positions, Dr. Jungels was the President of the Institute of Petroleum until June 2003. From 1997 through 2001, Dr. Jungels served as a Director and Chief Executive Officer of Enterprise Oil, plc. In 1996, Dr. Jungels served as the Managing Director of Exploration and Production at British Gas plc. He held various positions from 1974 to 1995 at PetroFina SA, including Executive Director from 1989 to 1995. Within the past five years, Dr. Jungels served as a director of Imperial Tobacco Group plc and a director of Woodside Petroleum Ltd. Dr. Jungels graduated in Geology from the University of Liege, Belgium and holds a Ph.D. in Geophysics and Hydraulics from the California Institute of Technology. Dr. Jungels is a Commander of the British Empire.
GASFRAC Energy Services, Inc. is an oil and gas technology and service company headquartered in Calgary, Alberta and the sole provider of waterless gelled LPG fracturing technology in North America.
This press release contains certain statements that constitute forward-looking information under applicable securities legislation. All statements other than statements of historical fact constitute forward-looking information. In some cases, forward-looking information can be identified by terminology such as "will", "goal", "plan", "believe", "scheduled" "continuing", or the negative of these terms or other comparable terminology. These statements are only as of the date of this document and we do not undertake to publicly update any forward looking information except in accordance with applicable securities laws. This forward-looking information includes statements with respect to, among other things: the nominees of the Company's board of directors; the current directors of the Company will not seek re-election and step down at the annual meeting of shareholders; the timing of the annual meeting of shareholders; the Company's strategic focus and renewed leadership; maximizing shareholder value; broadening and increasing the Company's customer base; and expanding the Company's fracturing fluid capabilities. Forward-looking information is based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect and therefore such forward-looking information should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its products and services. Forward-looking information is subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials. In addition, actual results could differ materially from those anticipated in the forward-looking information in this press release as a result of the risk factors set forth under the section entitled "Business Risks" in the Company's MD&A.
Requests for shareholder information should be directed to:
James M Hill
Chief Executive Officer
Nanes Balkany Contact:
Sard Verbinnen & Co.
Dan Gagnier/Jared Levy
SOURCE GASFRAC Energy Services Inc.