NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

CALGARY, Alberta, Dec. 07, 2017 (GLOBE NEWSWIRE) — STEP Energy Services Ltd. (the “Company” or “STEP”) (TSX:STEP) announced today that, in connection with its recently completed secondary offering of 5,307,000 common shares at an issue price of $12.25 per share (the “Offering Price”) on a bought deal basis (the “Offering”), the over-allotment option granted to the underwriters on the Offering (the “Over-Allotment Option”) has been partially exercised for an additional 650,000 common shares at the Offering Price for aggregate gross proceeds of $7,962,500.  The sale of the additional common shares pursuant to the Over-Allotment Option brings the aggregate gross proceeds from the Offering to $72,973,250.  STEP did not receive any proceeds from the Offering or in connection with the exercise of the Over-Allotment Option. 

The Offering was made through a syndicate of underwriters on a bought deal basis led by CIBC Capital Markets as sole bookrunner and Peters & Co. Limited as co-lead underwriter.

Following closing of the Offering and the partial exercise of the Over-Allotment Option, the limited partnerships comprising ARC Energy Fund 6 and ARC Energy Fund 8 (collectively, the “Selling Shareholders”) will, directly or indirectly, own or control in aggregate approximately 67% of the issued and outstanding common shares.

No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia) or any other jurisdiction outside Canada. This press release does not constitute or form a part of any offer or solicitation to buy or sell any securities in the United States or any other jurisdiction outside of Canada. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States and may not be offered or sold within the United States or to or for the benefit of a United States person absent registration or pursuant to an available exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offering of securities in the United States.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve known and unknown risks and uncertainties, most of which are beyond the Company’s control. The forward-looking statements contained in this press release include, but are not limited to, those relating to the ownership of the Selling Shareholders after closing. Should one or more of the risks or uncertainties underlying these forward-looking statements materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results could vary materially from those expressed or implied by the forward-looking statements. Accordingly, undue reliance should not be placed on these forward-looking statements. The forward-looking statements contained herein are made as of the date of this press release and, other than as required by applicable securities laws, the Company does not assume any obligation to update or revise it to reflect new events or circumstances. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

ABOUT STEP

STEP Energy Services is an oilfield service company founded in 2011 that provides fully integrated coiled tubing and fracturing solutions. The Company’s combination of modern, fit‐for‐purpose fracturing and coiled tubing equipment has differentiated STEP in plays where wells are deeper, have longer laterals, and higher pressure.

Initially operating only in Canada as a specialized, deep capacity coiled tubing company, in 2015 STEP expanded into the United States and also began offering fracturing services to our Canadian clients. Currently, STEP is a fully integrated, deep capacity coiled tubing and fracturing solutions provider focused primarily in the Montney and Duvernay in Canada, and a coiled tubing services provider in the United States with operations in the Permian and Eagle Ford in Texas and the Haynesville in Louisiana. The Company’s continuing track record of safety, efficiency and execution drives repeat business from blue‐chip exploration and production clients.

For more information please contact:

Regan Davis
President & Chief Executive Officer

Telephone: 403-457-1722
Email: [email protected]
Web: www.stepenergyservices.com