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Canadian Energy Services & Technology Corp. ("CES" or the "Company")
(TSX:CEU)(OTCQX:CESDF) is pleased to announce that it has acquired the drilling
fluids business assets (the "Acquisition") of Venture Mud One, L.P. ("Venture
Mud") and certain additional assets from affiliates of Venture Mud including VM
Transports, LLC, Venture Services, LLC, and Venture Services RM, LLC. The total
purchase price is approximately US$55.2 million which includes US$18.0 million
of deferred consideration subject to earn-out criteria and the issuance of
approximately US$12.7 million in common shares of CES ("Common Shares") to
Venture Mud. Venture Mud will expand the US operations of CES' wholly owned
subsidiary AES Drilling Fluids, LLC ("AES"). Established in 1996, Venture Mud is
a West Texas based private drilling fluids company that provides drilling fluid
solutions for a number of leading oil and natural gas companies with a focus on
the Permian Basin.


"We are acquiring an established Permian based drilling fluids company, with
experienced management, great customers, and excellent drilling fluids sales,
technical and field personnel," said Tom Simons, President and CEO of CES. "We
have been looking for an opportunity to grow our presence in the Permian which
is the most active basin being drilled in North America with over 460 drilling
rigs operating. We see many opportunities and synergies as we combine Venture
Mud with our AES operations. We also see the Permian Basin as a growth area for
our JACAM offerings." 


"We are excited to be joining CES, the leading independent drilling fluids
company in North America," said Mike Gilbert, President of Venture Mud. "The
combination of our team, our customer relationships and our expertise, together
with AES' oil-based mud and horizontal drilling expertise will be a powerful
partnership for growth." 


Venture Mud Acquisition - Details

Total consideration for the Acquisition is approximately US$55.2 million (the
"Purchase Price"), of which on close approximately US$12.7 million is payable in
common shares of CES (approximately 838,076 common shares) and the balance
US$42.5 million is to be paid in cash of which US$19.5 million is payable on
transaction date. Included in the cash consideration is US$18.0 million which is
payable as an earn-out upon the Venture Mud division achieving certain EBITDA
thresholds over a twenty-four month period post close.


Venture Mud generated approximately US$58.0 million in revenue and US$11.7
million of normalized earnings before interest, taxes, depreciation and
amortization ("EBITDA") for the twelve month period ended December 31, 2012.
Venture Mud also generated approximately US$16.1 million in revenue and US$3.3
million of normalized EBITDA for the three month period ended March 31, 2013.


The effective date of the Acquisition is July 1, 2013. As part of the
Acquisition, CES will acquire approximately US$6.0 million of drilling fluids
and product inventory and approximately US$12.0 million of fixed assets
consisting of real estate, trucks and equipment. 


CES has entered into employment agreements with key members of management of
Venture Mud which along with the establishment of a significant employee
retention fund, is expected to allow for a seamless integration and ensure
continuity in the business operations.


CES has funded the US$19.5 million cash payable on transaction date by a draw
down on its senior credit facility.


Details of the terms of the Acquisition are set out in the Asset Purchase
Agreement that will be filed by CES on SEDAR (www.sedar.com). 


Strategic Rationale of the Acquisition 

The Acquisition is expected to strengthen CES' position as the leading
independent North American drilling fluids provider. 


The Acquisition expands the scale and operational capabilities of CES within the
US market and provides a platform for growth in the Permian Basin. The Permian
is the most active drilling market in the US with approximately 460 operating
drilling rigs. In addition the Permian continues to transition more activity
towards horizontal drilling which increases the complexity of drilling
operations and increases the requirement for advanced drilling fluid solutions.
Venture Mud will be able to capitalize on AES' expertise, its advanced products,
and AES' logistics and procurement capabilities. In addition, once AES' barite
grinding facility is completed, which is expected by the end of 2013, Venture
Mud will have access to a primary source of API quality barite.


At closing Venture Mud was providing drilling fluids products and services to
thirty-eight active drilling rigs. 


CES will add Venture Mud's key field, technical and sales focused drilling
fluids employees, expanding CES' capabilities to effectively reach and service
customers in the US.


Post Acquisition CES will leverage the Venture Mud platform to sell and
distribute JACAM's suite of production and specialty chemicals in the Permian.


Management of CES expects the Acquisition to be accretive to CES' cash flow;
EBITDA; and net income.


Updated Guidance

Based on the Acquisition CES' is updating its expected guidance for the twelve
months ended December 31, 2013. CES' expected range of consolidated gross
revenue for 2013 will be approximately $609.0 million to $649.0 million and
expected consolidated EBITDAC will be approximately $101.0 million to $111.0
million. 


With respect to the Acquisition, CES will host a conference call / webcast at
8am MST (10am EST) on Tuesday, July 16, 2013.




North American toll-free: 1-888-789-9572                                    
International / Toronto callers: 416-695-7806                               
Participant pass code: 1677521                                              
Link to Webcast: http://www.canadianenergyservices.com/                     



About Canadian Energy Services & Technology Corp.

CES' business is focused on the design and delivery of technically advanced
fluids for the North American oil and gas industry. CES' business model requires
limited re-investment capital to grow. As a result, CES has been able to
capitalize on the growing market demand for drilling and production fluids in
North America while generating free cash flow. CES returns much of this free
cash flow back to shareholders through its monthly dividend. Additional
information about CES is available at www.sedar.com or at CES' website at
www.CanadianEnergyServices.com.


About Venture Mud

Venture Mud is headquartered in Midland, Texas, and is a leading independent
full-service drilling fluids company in the Permian Basin. The Permian Basin is
situated in the western portion of Texas and in southwest New Mexico. It is one
of the largest structural oil and gas basins in the US and is geologically
complex and encompasses many different producing formations within several
sub-basins. Venture Mud was established in 1996 and provides drilling fluid
solutions for a number of leading oil, natural gas, and unconventional natural
gas developers. Venture Mud's 103 employees and management have extensive
experience and have built the business with a focus on continued profitability
and revenue growth. The company has a strong customer base of over 100 different
clients and proven technical capabilities in delivering high quality drilling
fluid products and services.


THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.


Non-GAAP Measure

CES uses certain performance measures that are not recognizable under
International Financial Reporting Standards ("IFRS"). These performance measures
include EBITDA and EBITDAC. Management believes that this measure provides
supplemental financial information that is useful in the evaluation of CES'
operations. Readers should be cautioned, however, that these measures should not
be construed as alternatives to measures determined in accordance with IFRS as
an indicator of CES' performance. CES' method of calculating these measures may
differ from that of other organizations and, accordingly, these may not be
comparable.


Forward-Looking Information

This news release contains forward-looking information which is not comprised of
historical facts. Forward-looking information involves risks, uncertainties and
other factors that could cause actual events, results, performance, prospects
and opportunities to differ materially from those expressed or implied by such
forward-looking information. Forward-looking information in this news release
includes statements with respect to the Company's plans to integrate Venture Mud
with the operations of CES and management of CES' expectation of the effect of
the Acquisition on CES' cash flow, EBITDA and net income. Material assumptions
and factors that could cause actual results to differ materially from such
forward-looking information include the successful integration of Venture Mud
employees and customers with CES, the number of operating drilling rigs in the
Permian basin, or the ability for CES to sell JACAM's suite of production and
specialty chemicals in the Permian. Although the Company believes that the
material assumptions and factors used in preparing the forward-looking
information in this news release are reasonable, undue reliance should not be
placed on such information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur. The Company
disclaims any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events or otherwise,
other than as required by law.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Canadian Energy Services & Technology Corp.
Tom Simons
President and Chief Executive Officer
(403) 269-2800


Canadian Energy Services & Technology Corp.
Craig F. Nieboer, CA
Chief Financial Officer
(403) 269-2800
info@ceslp.ca
www.CanadianEnergyServices.com

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