Mr. Swapan Kakumanu reports

INTERCEPT ENERGY SERVICES REPORTS FIRST QUARTER -- MARCH 31, 2015, RESULTS

Intercept Energy Services Inc. has released its financial results for the first quarter ended March 31, 2015.

First quarter ended March 31, 2015, highlights:

• Gross revenues were lower by 15 per cent to $1.2-million for the three months ended March 31, 2015, compared with $1.4-million for the same quarter last year, mainly due to a decrease in the average charge-out rates for its heating units in the United States due to the general overall slowdown of the oil and gas activities in the regions where the corporation operates.
• During the first quarter of 2015, the corporation closed on a non-brokered private placement and issued 20 million units at five cents per unit for gross proceeds of $1-million. Each unit consists of one common share of the corporation and one share purchase warrant that entitles the holder to purchase one additional common share of the corporation for a period of two years from the closing date at a price of 7.5 cents per share for the first 12 months and 10 cents for the remaining 12 months.
• The corporation had a total of five heating units operating as at the end of March 31, 2015, compared with four heating units as at the end of March 31, 2014.
• Net loss before other items for the quarter ended March 31, 2015, was $900,000 compared with a net loss before other items of $300,000 for the same quarter last year. The increase in loss before other items was 166 per cent, mainly due to a decrease in overall revenues and a decrease in average charge-out rates for its heating units during the current quarter due to slower oil and gas activities in the regions where the corporation operates.
• Net loss for the quarter ended March 31, 2015, was $1.1-million compared with a net loss of $400,000 for the same quarter last year, an increase in loss by 170 per cent, mainly due to a decrease in overall revenues and a decrease in average charge-out rates for its heating units during the current quarter due to slower oil and gas activities in the regions where the corporation operates and an increase in finance expenses as the corporation entered into higher rate lease financing for its equipment during the second half of 2014.

Commenting on first quarter ended March 31, 2015, results, Swapan Kakumanu, IES, chief financial officer, stated: "Our first quarter results were impacted by the overall slowdown of oil and gas activities in the regions we currently operate in. The company is taking necessary steps to streamline operations and adjust costs with the new changed economic environment. We expect to see continued pressure on our charge-out rates on our heating units during the remainder of 2015."

               CONDENSED INTERIM STATEMENTS OF NET LOSS AND COMPREHENSIVE LOSS
                              (expressed in Canadian dollars)

                                                         Three months ended       Three months ended
                                                                   March 31,                March 31,
                                                                       2015                     2014
Revenue
Rental income                                                   $ 1,159,273               $ 1,365,34
Expenses
Consulting fees                                                     202,451                  127,241
Depreciation                                                        176,057                  144,294
Equipment maintenance and rental                                    138,479                   50,042
Fuel and sundry direct operating costs                              368,850                  587,067
Occupancy costs                                                      90,159                   44,102
Office and sundry                                                   141,844                   49,309
Professional fees                                                    80,571                   67,014
Royalties                                                           108,056                  217,083
Salaries and wages                                                  535,074                  362,161
Share-based compensation                                              8,433                   33,189
Travel, marketing and conferences                                    38,764                   33,167
Allowance for doubtful debts                                        347,181                       --
Foreign exchange (gain) loss                                       (147,493)                      --
Total                                                             2,088,426                1,714,669
(Loss) before other items                                          (929,153)                (349,323)
Other items
Gain (loss) on derivative liability                                 (14,256)                    (814)
Finance expense                                                    (186,713)                 (68,132)
Total                                                              (200,969)                 (68,946)
Net (loss) and total comprehensive (loss)                      $ (1,130,122)              $ (418,269)
Basic and diluted (loss) per common share                             (0.01)                   (0.00)

We seek Safe Harbor.