2011-06-17-2011-05-26

To buy well service company with 17 service rigs operating throughout AB & BC.

Savanna Energy Services Corp., Calgary, (Toronto: SVY) plans to acquire privately held, Edmonton, Alberta-based Silverstar Well Servicing Ltd. for C$39.6 million.

The value excludes approximately C$5.5 million in debt. Savanna Energy will issue 0.12834 Savanna share per Silverstar share (up to 1.99 million shares) or approximately C$1.28 per Silverstar share (up to C$18.8 million in cash) or a combination of both.

Silverstar provides well services throughout Alberta and British Columbia. Its assets include 17 service rigs which will complement both Savanna's existing service rig fleet and the recently announced proposed acquisition of Performance Services Ltd. Silverstar's fleet is comprised of 13 Class III heavy-duty, mobile, free-standing double workover rigs and four free-standing single workover rigs.

Savanna's service rig fleet will expand by 18 doubles and 15 singles with the acquisitions of both Performance and Silverstar taking the total service rig count to 101 throughout Canada, the U.S. and Australia.

The deal is expected to close in July.