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Millennium New Build and Financing

CALGARY, ALBERTA -- (Marketwired) -- 08/15/14 -- Millennium Stimulation Services Ltd. ("Millennium" or the "Company") would like to provide an update on its current operational and growth activities. Given that the Company has been recently operating at very high rates of utilization and based on its clients' commitments, Millennium is moving forward with a new 18,000 BHP coil frac spread with enhanced capability in cryogenic gas capability to further develop the Company's LNG service strategy. In anticipation of this new build, Millennium has initiated a non-brokered private placement, as described below. For details regarding Millennium's expansion into LNG services, please refer to Millennium's press release regarding the acquisition of ENFRAC Inc.

Fleet Utilization

Industry activities appeared to be strengthening as it approaches 2015. The current utilization of the Millennium fleet speaks to this point.

--  Currently, one of Millennium's coil/frac fleets is under 100 percent 24
    hour contract commitment through to mid-2015 and beyond at favourable
    rate conditions.

--  The second coil/frac fleet is currently executing on spot work and/or
    smaller commitments for a number of clients. It is maintaining roughly
    70 percent utilization on a 12 hour schedule for clients looking at
    Millennium for potentially longer-term commitments.

--  The Company's near term efforts are to move both fleets into a 24-hour
    schedule in order to further meet customer demands.

--  As Millennium fleets remain in high demand, the Company will be
    exploring an increase in sales rates by first quarter 2015.

Millennium New Build Equipment

Millennium is constantly pushing to improve the completion results for our clients. The industry is steadily moving to higher pumping rates to increase well productivity for its clients. As a result, Millennium is taking the initiative to deploy a much larger multipurpose 18,000 BHP fleet for the plains region. A larger fleet will also lead the way to the possibility of expanding Millennium's horsepower and moving operations into areas with much larger requirements as well as foam fracing with either N2 or LNG. This new multipurpose fleet has the benefit of ensuring that the Company does not miss out on any opportunity within its pumping capacity. Of the total capability, 5,000 BHP will be assigned to pre-existing frac spreads. The total capital commitment for this fleet addition will be approximately $38 million. It is expected that the new fleet additions should be operational in early third quarter 2015.


On Monday July 28th, Millennium commenced with a non-brokered financing of up to $12 million to cover the equity portion of the new build equipment. The target price for the financing is $2.25 per common share. The Company has received favourable indications for lead orders for a substantial portion of the total equity financing and may increase the amount of its total financing should the need arise. It is anticipated that Millennium will fund the remainder of the new build through debt and cash flow.

Markets continue to improve and Millennium crews are in greater demand. The combination of the Company's current utilization of its equipment, build outs, and the ENFRAC acquisition should leave Millennium in a strong position to differentiate, and remain ahead of its competition. The new fleet build should have a strong appeal to clients based on its high rate capacity and cryogenic (both N2 and LNG) capability thus advancing Millennium's LNG service strategy. The Company anticipates that this new build will generate solid utilization rates. Given the current client base and successful feedback, commitments may be easier to maintain for all Millennium assets going through 2015, and continuing into 2016.

Forward Looking Statements and Advisories

This investor update contains certain forward-looking information and forward-looking statements (collectively, "forward-looking statements") under the meaning of applicable securities laws. The use of the words "would", "intend", "anticipate", "potential", "will", "expected", "can", "may", "should" and derivations thereof and similar terms identify forward-looking statements. In particular, but without limiting the foregoing, this news release contains forward-looking statements regarding: Millennium's plans and expectations regarding operational and growth activities; the anticipated benefits of the transaction to Millennium and its shareholders; the anticipated terms of the financing; the timing and cost of capital expenditures; and the timing of operations.

The forward-looking statements contained in this investor update reflect several material factors and expectations and assumptions of Millennium including, without limitation, assumptions relating to the ability of Millennium to execute its current business plan and operational plans in the manner currently planned. Millennium believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct.

The forward-looking statements contained in this investor update are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements, including among others: failure to realize the anticipated benefits of the transaction; the successful exploitation and integration of the technology; customer acceptance and demand for the technology; success in obtaining issued patents; the potential development competing technologies by market competitors; and the availability of products, raw materials and qualified personnel.

Accordingly, readers should not place undue reliance on the forward-looking statements contained herein. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this investor update are made as of the date of this investor update and Millennium disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

Millennium Stimulation Services
Michael Heier
President and Chief Executive Officer
(403) 234-8144

Millennium Stimulation Services
Roy Ma
Vice President, Business and Corporate Development
(403) 234-8144

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