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Ceiba Energy Services Inc. Announces Bought Deal Private Placement for Gross Proceeds of C$12 Million

July 3, 2014

/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./

CALGARY, July 3, 2014 /CNW/ - Ceiba Energy Services Inc. ("Ceiba" or the "Company") (TSXV:CEB) is pleased to announce that the Company has entered into an agreement under which a syndicate co-led by Peters & Co. Limited and Clarus Securities Inc. and including Canaccord Genuity Corp., Scotia Capital Inc. and Jennings Capital Inc. (collectively, the "Underwriters") has agreed to buy 17,143,000 common shares of the Company (the "Common Shares") at a price of C$0.70 per Common Share for gross proceeds to the Company of C$12,000,100 (the "Offering").

The Offering is expected to close on or about July 24, 2014 (the "Closing Date").  The Common Shares issued under the Offering will have a hold period of four months plus one day.

The Offering is subject to the approval of the TSX Venture Exchange. The Common Shares will be offered in the provinces of Alberta, British Columbia, Saskatchewan, Manitoba and Ontario, and in such other jurisdictions where the Common Shares can be issued on a private placement basis, exempt from any prospectus, registration or other similar requirements.  The Common Shares may also be placed privately in the United States with certain qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933 and with certain accredited institutional investors under Regulation D.

The Underwriters shall be paid a cash fee equal to 5.5% of the gross proceeds of the Offering.  A reduced commission of 2.75% shall apply to gross proceeds from subscriptions received from certain investors identified by the Company.

Ceiba intends to use the net proceeds of the Offering to reduce indebtedness, expand the capacity of existing facilities, advance greenfield projects and for general working capital purposes.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

About Ceiba Energy Services Inc.

Ceiba provides specialized services to the energy sector, specifically to companies involved in the exploration, extraction and production of oil and natural gas in under serviced market space throughout Western Canada.  Ceiba develops and constructs facilities in proximity to its customers to provide treatment of crude oil emulsion, terminalling, storage and marketing of oil and disposal of production water.

Reader Advisory

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 the accuracy of this release.

Forward-looking statements

Certain statements made herein may constitute forward-looking statements. These statements relate to future events or the future economic performance of Ceiba and carry known and unknown risks, uncertainties and other factors that may appreciably affect their results, economic performance or accomplishments when considered in light of the content or implications to statements made by Ceiba. Actual events or results could be significantly different. Accordingly, investors should not place undue reliance on forward-looking statements. Ceiba does not intend and undertakes no obligation to update these forward-looking statements, except as required under applicable securities laws.

SOURCE Ceiba Energy Services Inc.


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