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Canada NewsWire
Sep 16, 2010


CALGARY, Sept. 16 /CNW/ - Cathedral Energy Services Ltd. (the "Company" or "Cathedral" / TSX: CET) is pleased to announce it has acquired the production testing assets of a private company at a cost of $2.3 million. The assets acquired include nine production testing units along with related portable offices, flare stacks, incinerators and field vehicles. Three of the acquired units are expected to be deployed in to the U.S. market and the remaining six units added to Cathedral's Canadian fleet. Cathedral expects to incur approximately $900,000 of costs to upgrade the purchased equipment.

In addition, Cathedral has ordered an additional three high pressure production testing units which will be deployed into the Marcellus shale play in the U.S. northeast at a cost of $2.2 million. The Company expects these units to be operational in 2010 Q4. This equipment will be contracted to a major oil and natural gas producer and will bring the number of high pressure units operating in the Marcellus region by Cathedral to six.

These expenditures are anticipated to be funded from a combination of cash flow from operations and the Company's credit facility.

With the acquisition of the production testing assets noted above and the further build out of units for the Marcellus region, Cathedral expects to have 30 units in Canada and 26 units in the U.S. for a total of 56 units which represents an approximate 60% increase in the Company's production testing fleet since December 2009. The U.S. based units are expected to be located as follows: Rockies - 17, Pennsylvania - 6 and North Dakota - 3.


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", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this news release contains forward-looking statements relating to the expected operational dates, equipment delivery dates, expenditure funding and equipment locations. The Company believes the expectations reflected in such forward-looking statement is 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 the Company, 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. You 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 performance of the Company's businesses, including current
        business and economic trends;
    -   oil and natural gas commodity prices and production levels;
    -   capital expenditure programs and other expenditures by the Company
        and its customers:
    -   the ability of the Company to retain and hire qualified personnel;
    -   the ability of the Company to obtain parts, consumables, equipment,
        technology, and supplies in a timely manner to carry out its
    -   the ability of the Company to maintain good working relationships
        with key suppliers;
    -   the ability of the Company to market its services successfully to
        existing and new customers;
    -   the ability of the Company to obtain timely financing on acceptable
    -   currency exchange and interest rates;
    -   risks associated with foreign operations;
    -   changes under governmental regulatory regimes and tax, environmental
        and other laws; 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 the Company'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 this news release and in the Company's Annual Information Form under the heading "Risk Factors". Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.

All forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in the Company's current Annual Information Form and Annual Report which have been filed with Canadian provincial securities commissions and are available on

%SEDAR: 00000484E

For further information: Mark L. Bentsen, President and Chief Executive Officer or P. Scott MacFarlane, Chief Financial Officer, Cathedral Energy Services Ltd., 1700, 715 - 5th Avenue S.W., Calgary, Alberta, T2P 2X6, Telephone: 403.265.2560, Fax: 403.262.4682,

Cathedral opens a 36,000 square foot full service operation facility in Oklahoma City, Oklahoma and Estevan, Saskatchewan operations migrate to Emerald Park, Saskatchewan.