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LSI

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Share Name Share Symbol Market Type
TSXV:LSI TSX Venture Common Stock
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0 -

Lonestar Announces Southern Saskatchewan Asset Acquisition

20/06/2014 10:37pm

Marketwired Canada


Lonestar West Inc. (TSX VENTURE:LSI) ("Lonestar" or the "Company"), a premier
provider of Hydrovac and Vacuum truck services, is pleased to announce a
strategic acquisition of certain assets of Vamp Oilfield Services Inc ("Vamp"),
an arm's length oil and gas service provider for total consideration of $9.77
million. 


Vamp started operations in 2007 and is currently operating a fleet of 2
Hydrovac, 9 vacuum trucks, and 12 ancillary units out of their base in Moose
Jaw, Saskatchewan. In calendar 2013 Vamp generated Gross Sales of $6.6 million
and over $2.6 million in EBITDA. The acquisition increases Lonestar's fleet from
93 units to 116 units. 


"The Vamp acquisition is in line with our corporate growth strategy. The
addition of a base in Moose Jaw, Saskatchewan will complement our existing base
in Carlyle, Saskatchewan and expand our presence in Western Canada," said James
Horvath, CEO of Lonestar. "Lonestar would also like to welcome Ryan Buckton to
the Company. Mr. Buckton's experience in the Moose Jaw area will be a valuable
addition to our management team." 


In consideration of the acquisition of certain assets of Vamp, the Corporation
paid $5.52 million cash on closing, and issued five separate unsecured
promissory notes (the "Notes") totaling $2.25 million as deferred consideration.
The Notes are subject to certain performance thresholds being and do not bear
interest. In addition, Lonestar issued 543,478 common shares of the Company at a
price of $3.68 per share or $2.00 million in the aggregate. 


Lonestar is also pleased to announce a settlement for an aggregate of $251,853
in Lonestar's favour for a legal claim against a former lease operator for
breach of a non-competition clause. Lonestar received $47,317, net of legal fees
in damages and released $204,536 in accounts payable owed to the former lease
operator into revenue. 


About Lonestar West

Based in Sylvan Lake, Alberta, Lonestar West Inc. (www.lonestarwest.com)
operates a fleet of 116 HVAC and vacuum trucks and ancillary vehicles throughout
Western Canada and the United States. It is focused on profitably growing its
HVAC services to become a major competitor in the North American market.


Disclaimer for Forward-Looking Information

Certain statements contained in this press release constitute forward-looking
information within the meaning of applicable securities laws. Forward-looking
information may relate to the Company's future outlook and anticipated events or
results and may include statements regarding the financial position, business
strategy, budgets, litigation, projected costs, capital expenditures, financial
results, taxes, plans and objectives of or involving the Company. Particularly,
statements regarding future results, performance, achievements and prospects or
opportunities for the Company are forward-looking statements. In some cases,
forward-looking information can be identified by such terms such as "may",
"might", "will", "could", "should", "would", "occur", "expect", "plan",
"anticipate", "believe", "intend", "estimate", "predict", "potential",
"continue", "likely", "schedule", or the negative thereof or other similar
expressions concerning matters that are not historical facts. Although the
forward-looking statements contained in this press release are based upon
assumptions that management of the Company believes are reasonable based on
information currently available to management, there can be no assurance that
actual results will be consistent with these forward-looking statements.
Forward-looking statements necessarily involve known and unknown risks and
uncertainties, many of which are beyond the Company's control, which may cause
actual results to differ materially from those expressed or implied by such
forward-looking statements. The forward-looking statements made in this press
release relate only to events or information as of the date hereof. Except as
required by applicable law, the Company undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise, after the date on which the statements
are made or to reflect the occurrence of unanticipated events.


For more information please visit the Lonestar West website at www.lonestarwest.com.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT
TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Lonestar West Inc.
James Horvath
President & CEO
403-887-2074
info@lonestarwest.com
www.lonestarwest.com


The Howard Group Inc.
Jeff Walker
Investor Relations
(888) 221-0915 or (403) 221-0915
jeff@howardgroupinc.com

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