Ceiba Energy Services : Latest News Ceiba Energy Services Announces First Quarter 2016 Financial Results and Operational Update 14

CALGARY, ALBERTA- (May 16, 2016) - Ceiba Energy Services Inc. ('Ceiba' or the 'Company') (TSXV: CEB) is pleased to announce its first quarter 2016 financial results highlighted by an adjusted EBITDA of $35 thousand, an increase of 13% from the first quarter of 2015. Ceiba continues to be well positioned to execute its business plan and capitalize on growth opportunities. The Company has funded the completion of the Obed and Athabasca facilities in the first quarter of 2016. With cash on hand and its available credit facility, Ceiba has adequate liquidity for the repayment of its convertible debentures when they mature. Ceiba has filed its Financial Statements and related Management's Discussion and Analysis for the quarter ended March 31, 2016 on the Company's profile at www.sedar.com.

The Company's annual general and special meeting is scheduled for May 17, 2016 at 10:00 a.m. Calgary time at the Eau Claire Place II conference room, second floor, 521 - 3rd Avenue S.W., Calgary, Alberta, T2P 3T3.

Ceiba continues to execute its growth strategy and improve its financial performance through a challenging period in the oil and gas industry which started in Q4 2014.

In Q1 2016, the Company continued capital development to expand services in areas where demand is still strong:

 Opened the Obed produced water facility in late February 2016;

 Opened the Athabasca waste water facility in late March 2016; and

 Continued the development of the Kaybob waste water facility which is expected to start construction in the second half of 2016.

Ceiba did experience challenges as a result of the industry slowdown which has offset some of these developments, including the reduced drilling, early spring break-up which began in late February, and increased production shut-ins by customers, leading to the impact of overall volume and product mix at existing sites.

Despite the challenges faced by Ceiba and the 30% decrease in volumes year-over-year, revenue decreased only 1% and gross margins decreased only 3%. Adjusted EBITDA increased 4 thousand in Q1 2016 compared to Q1 2015 as a result of the Company's continued focus on cost control to achieve strong gross margins and reduce general and administrative expenses. During Q1 2016, executives and senior managers at the Company voluntarily reduced salaries by 10%.

All tabular amounts are in CDN$ thousands except for per share amounts and where otherwise noted.

FIRST QUARTER OPERATIONAL AND FINANCIAL HIGHLIGHTS For the three months ended,
($000's unless noted)	March 31, 2016	March 31, 2015	2016 vs. 2015
Total received volume (000's m3)	77	110	(30%)
Revenue	1,598	1,613	(1%)
Gross margin(1)	611	632	(3%)
Gross margin %(1)	38%	39%	(1%)
Adjusted EBITDA(1)	35	31	13%
Total assets	36,173	35,116	3%
Net working capital(1)	(3,680)	13,125	N/A
Convertible debentures	8,683	8,341	N/A
Net loss and comprehensive loss	(808)	(885)	N/A
Net loss per share, basic and fully diluted	($0.01)	($0.01)	N/A
Funds (used in) operations	(212)	(228)	N/A