GASFRAC Energy Services, Inc. (TSX:GFS) announces today that the corporation has commenced proceedings and obtained court protection under the Companies' Creditors Arrangement Act ("CCAA") pursuant to an initial order granted by the Court of Queen's Bench, in the Province of Alberta, on January 15, 2015. Pursuant to the Initial Order the corporation and all of its operating subsidiaries have obtained protection from its creditors under CCAA, other than in respect of the corporation's primary secured lender, PNC Bank Canada Branch for a period expiring February 9, 2015. As a result of a combination of continuing negative operating results, limited access at the present time to capital markets for junior issuers such as the Corporation, reduced industry activity resulting from depressed petroleum and natural gas commodity prices and the inability of the corporation to obtain a suitable offer for the purchase of the corporation or its assets after a strategic alternative process, which commenced on November 13, 2014, that would satisfy all of the Corporation's existing financial obligations, both secured and unsecured, the Corporation was unable to restructure its affairs in an adequate manner, and after careful consideration of all other available alternatives, the board of directors of the Corporation determined that it was in the best interests of the corporation and all of its stakeholders to file for an application for creditor protection under the CCAA.

Subject to further court approval, it is anticipated that the corporation will continue to retain CIBC World Markets Inc. as sales agent, investment banker and financial advisor to the corporation in connection with any proposed financing or sale transaction that may arise under the CCAA proceedings or any future SISP. Ernst & Young Inc. has been appointed Monitor of the Corporation for the CCAA proceedings.