Intercept Energy Announces Acquisition of 640Energy

EDMONTON, AB / ACCESSWIRE / April 10, 2015 / INTERCEPT ENERGY SERVICES INC. (“Intercept” or the “Company”) – (TSX-V: IES / PINKSHEETS: IESCF), announced today that it has acquired all of the issued and outstanding shares of 640energy, Inc., effective April 1, 2015, from arm’s length third parties pursuant to a share purchase agreement, subject to TSX Venture Exchange final approval. The purchase price of $650,000 was satisfied by the issuance of 13 million common shares of Intercept at a deemed price of $0.05 per share. The purchase price is also subject to an adjustment, such that the price shall be decreased on a dollar for dollar basis by the amount, if any, by which the shareholders equity of 640energy as of March 31, 2015, is less than zero. In addition, as required by the purchase agreement, the Intercept common shares will be held in escrow pursuant to the terms of a voluntary share escrow agreement. One-quarter of such Intercept common shares shall be released following the calculation of the purchase price adjustment, and the remaining three-quarters of the Intercept common shares shall be released in tranches based on achievement of specified revenue milestones.

Mr. Herbert Towning, lead director of Intercept commented ” After reviewing the successful operational performance of our Heating Units during 2014 in the U.S. which was largely attributable to the strong partnership the Company had with 640energy, Inc. it was time for Intercept to lock in this partnership. This is a strategic acquisition which will allow Intercept and 640energy, Inc. to better service our mutual customers and set the ground work to acquire new ones”.

About Intercept Energy Services Inc.

Intercept Energy Services Inc. (“IES”) (TSX Venture: IES, PINKSHEETS: IESCF) is a North American Oil Field Service Firm that specializes in employing, developing and marketing efficient, innovative and proprietary technologies. Technologies such as its HE Heat (TM), provide the highest efficiency frac water heating services; that are used in oil and gas exploration and by production companies for the fracturing process throughout North America. HE Heat(TM) reduces fuel consumption and emissions, enhances safety and productivity, enables extreme cold weather operations; and results in significantly lower costs resulting in both a cost savings and competitive advantage for its customers.

For more information, visit http://InterceptES.com, or contact the persons below

Mr. Swapan Kakumanu
Chief Financial Officer
1.877.975.0558
skakumanu@Interceptes.com

Neither the 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 the accuracy of this release.

SOURCE: Intercept Energy Services Inc. 

ReleaseID: 427690