Aveda Transporation and Energy Services Announces Signing of Definitive Agreement to Acquire Precision Drilling's U.S. Rig

Aveda Transporation and Energy Services Announces Signing of Definitive 
Agreement to Acquire Precision Drilling's U.S. Rig Moving
CALGARY, ALBERTA -- (Marketwired) -- 06/16/14 --   Aveda
Transportation and Energy Services Inc. ("Aveda" or the "Company")
(TSX VENTURE: AVE), a leading provider of oilfield hauling services
and equipment rentals to the energy industry, today announced that,
through its operating subsidiary in the U.S., it has signed an asset
purchase agreement to acquire Precision Drilling Corporation's
("Precision") U.S. rig moving assets (the "Acquisition"). Aveda
expects to acquire rig moving equipment, including bed/tandem trucks,
tractors, trailers, loaders and cranes, for total consideration of
US$24.0 million. 
Selected assets being acquired include: 

                                                  Total Number              
                                          Number    in Aveda's    Percentage
                      # of Pieces   Currently in    U.S. Fleet   Increase in
                         from the   Aveda's U.S.          Post  Aveda's U.S.
Equipment Type        Acquisition          Fleet   Acquisition         Fleet
Bed/Tandem Trucks              13             34            47           38%
 Tractors                      59             93           152           63%
Trailers                       69            211           280           33%
Cranes                         12              6            18          200%

"This is a very exciting time for Aveda. Through this transaction we
are acquiring a modern and well maintained fleet that shares the same
specifications and equipment configuration as our current U.S.
assets," said Kevin Roycraft, President and CEO of Aveda. "This will
support a smooth integration into our operations and drive
utilization. It also strengthens our relationship with Precision and
we look forward to working with Precision on internal and customer
rig moves in the future. Strategically, this will further reduce
Aveda's reliance on third-party equipment suppliers, helping to
improve margins, and allow us to allocate equipment to both current
and new operating areas to take advantage of high activity levels and
further growth opportunities in certain regions." 
Subject to customary documentation and approvals, the Company expects
to close the Acquisition on July 1, 2014. Aveda expects these assets
to be deployed sometime in the third quarter of 2014. A significant
portion of Aveda's 2014 capital expenditure budget is being allocated
to the acquisition. Management intends to increase planned capital
expenditures for 2014 with an eye to funding additional growth
initiatives and reducing the Company's third party costs. 
About Aveda Transportation and Energy Services 
Aveda provides specialized transportation services and equipment
required for the exploration, development and production of petroleum
resources in the Western Canadian Sedimentary Basin and in the United
States of America principally in and around the states of Texas,
Pennsylvania and North Dakota. Transportation services include both
the equipment necessary to move the load as well as a trained,
professional driver capable of securing, moving and manipulating the
load at its origin and destination. Aveda's rental operations include
the rental of tanks, mats, pickers, light towers and other equipment
necessary for oilfield operations. 
Aveda was incorporated in 1994 as a private company to serve the oil
and gas industry. In the spring of 2006 the Company went public on
the TSX Venture Exchange. Aveda has major operations in Calgary, AB,
Slave Lake, AB, Leduc, AB, Sylvan Lake, AB, Edson, AB, Mineral Wells,
TX, Pleasanton, TX, Midland, TX, Williamsport, PA, Williston, ND, and
Buckhannon, WV. Aveda is publicly traded on the TSX Venture Exchange
under the symbol AVE. For more information on Aveda please visit
This News Release contains certain forward-looking statements and
forward-looking information (collectively referred to herein as
"forward-looking statements") within the meaning of applicable
Canadian securities laws. All statements other than statements of
present or historical fact are forward-looking statements.
Forward-looking statements are often, but not always, identified by
the use of words such as "anticipate", "achieve", "could", "believe",
"plan", "intend", "objective", "continuous", "ongoing", "estimate",
"outlook", "expect", "may", "will", "project", "should" or similar
words, including negatives thereof, suggesting future outcomes. In
particular, this News Release contains forward-looking statements
relating to: demand for the Company's services and general industry
activity level; the Company's growth opportunities; and expectation
to maintain revenue and equipment utilization. Aveda believes the
expectations reflected in such forward-looking statements are
reasonable as of the date hereof but no assurance can be given that
these expectations will prove to be correct and such forward-looking
statements should not be unduly relied upon. 
Various material factors and assumptions are typically applied in
drawing conclusions or making the forecasts or projections set out in
forward-looking statements. Those material factors and assumptions
are based on information currently available to Aveda, including
information obtained from third party industry analysts and other
third party sources. In some instances, material assumptions and
material factors are presented elsewhere in this News Release in
connection with the forward-looking statements. Readers are cautioned
that the following list of material factors and assumptions is not
exhaustive. Specific material factors and assumptions include, but
are not limited to: 

--  the completion of the Acquisition; 
--  the performance of Aveda's businesses, including the Acquisition assets,
    current business and economic trends; 
--  oil and natural gas commodity prices and production levels; 
--  capital expenditure programs and other expenditures by Aveda and its
--  the ability of Aveda to retain and hire qualified personnel; 
--  the ability of Aveda to obtain parts, consumables, equipment,
    technology, and supplies in a timely manner to carry out its activities;
--  the ability of Aveda to maintain good working relationships with key
--  the ability of Aveda to market its services successfully to existing and
    new customers; 
--  the ability of Aveda to obtain timely financing on acceptable terms; 
--  currency exchange and interest rates; 
--  risks associated with foreign operations; 
--  changes under governmental regulatory regimes and tax, environmental and
    other laws in Canada and the United States; and 
--  a stable competitive environment.

Forward-looking statements are not a guarantee of future performance
and involve a number of risks and uncertainties, some of which are
described herein. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties, which may cause Aveda's
actual performance and financial results in future periods to differ
materially from any projections of future performance or results
expressed or implied by such forward-looking statements. These risks
and uncertainties include, but are not limited to, the risks
identified in Aveda's annual information form and management
discussion and analysis for the year ended December 31, 2013 (the
"MD&A"). Any forward-looking statements are made as of the date
hereof and, except as required by law, Aveda assumes no obligation to
publicly update or revise such statements to reflect new information,
subsequent or otherwise. 
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release. 
Aveda Transportation and Energy Services Inc.
Bharat Mahajan, CA
Vice President, Finance and Chief Financial Officer
(403) 264-5769
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