Mr. Andy Pernal reports

STRAD ENERGY SERVICES LTD. ANNOUNCES INCREASE TO PREVIOUSLY ANNOUNCED BOUGHT DEAL FINANCING

Due to strong demand, Strad Energy Services Ltd. has increased the size of its previously announced offering to 7,763,976 Class A shares at a price of $1.68 per common share for aggregate gross proceeds to Strad of approximately $13,043,480. The company has entered into an agreement with a syndicate of underwriters led by Raymond James Ltd. In addition, Strad has granted the underwriters an overallotment option, exercisable for a period of 30 days following closing of the offering, to purchase up to an additional 1,164,596 common shares at a price of $1.68 per common share to cover overallotments. Total gross aggregate proceeds will be approximately $15-million if the overallotment option is exercised in full.

The offering will be completed by way of short form prospectus in all provinces of Canada, other than Quebec, and on a private-placement basis in the United States, pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended. The offering is subject to customary conditions, including receipt of applicable regulatory and stock exchange approvals, and is expected to close on or about Feb. 7, 2017.

The net proceeds of the offering (including the net proceeds from the exercise of the overallotment option, if any) will initially be used by the company to reduce outstanding bank indebtedness, thereby freeing up borrowing capacity that may be redrawn as required to finance the corporation's continuing capital expenditure program, potential acquisitions that may be identified from time to time, and for general working capital and corporate purposes.

About Strad

Strad is a North American energy services company that provides rental equipment and matting solutions to the oil and gas and energy infrastructure sectors. Strad focuses on providing complete customer solutions in Canada and the United States.

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