2011-06-21-2011-06-06

To buy drilling fluids company with operations in SK, AB, BC & MB.

Secure Energy Services Inc., Calgary, (Toronto: SES) plans to acquire the operating assets of Calgary-based XL Fluid Systems Inc. for C$36.95 million.

Secure Energy will pay C$18.5 million in cash and issue 2.3 million shares valued at approximately C$18.5 million.

XL Fluids develops and provides drilling fluids and drilling-fluid systems to the energy industry in Saskatchewan, Alberta, British Columbia and Manitoba.

The acquisition is being made pursuant to an asset purchase agreement between Secure and Marquis Alliance Energy Group Inc., which was recently acquired by Secure for C$131 million in cash and stock.

Marquis Alliance president George Wadsworth says, "The acquisition of XL Fluids significantly expands the geographical presence of Marquis Alliance particularly in Saskatchewan. XL Fluids will continue to operate in Saskatchewan and Manitoba, while their operations in British Columbia and Alberta will be integrated into Marquis Alliance."

XL Fluids president Devon Hanson says, "By combining with Marquis Alliance we can offer our customers additional services such as solids control and environmental services. The combination with Secure will provide opportunities for XL Fluids to provide full cycle 'cradle to grave' drilling fluid solutions."

Secure president and chief executive Rene Amirault says, "The acquisition is a key component to our strategic plan to provide energy services in all western Canadian markets, particularly due to XL Fluid's strong presence in the Bakken, Viking and Cardium. By expanding the geographical footprint of our drilling fluids business, Secure becomes the leading provider of drilling fluid systems in the Western Canadian Sedimentary Basin."

The deal is expected to close by July 1.