Western Energy Services Corp. announces operational update and record revenue
January 09 2012 - 7:58AM
PR Newswire (Canada)
CALGARY, Jan. 12, 2012 /CNW/ - Western Energy Services Corp.
("Western") is pleased to provide an update with regards to its
strong operating results. Highlights: -- Record revenue in the
fourth quarter of 2011 totalled $101.3 million, a $74.7 million
increase (or 281%) over the same period of the prior year, and a
$20.5 million increase (or 25%) over the third quarter of 2011, due
to improved day rates and increased utilization resulting from
strong customer demand, and an increased rig fleet; -- Western
commissioned one fit for purpose telescopic ELR double drilling rig
in December 2011. As a result, Western exited 2011 with 43 rigs in
its fleet, 38 in Canada and 5 in the United States; -- Western is
currently constructing four fit for purpose telescopic ELR double
drilling rigs, the first two of which are expected to be completed
in the first quarter, with the remaining two expected to be
delivered in the second and third quarters of 2012; -- Western's
first well service rig successfully began operations in January
2012. The remaining four well service rigs are expected to commence
operations in the first and second quarters of 2012. Three Year
Operating monthsendedDec ThreemonthsendedDec 31, endedDec
Highlights 31, 2011 2010 31, 2011 Year endedDec 31, 2010 Canadian
contract drilling fleet: - Average 37 16 32 13 (1) - End of 38 22
38 22 period Canadian 79% 65% 70% 58% (1) drilling rig utilization
rate(2) CAODC 61% 50% 52% 37% (1) industry average utilization
rate(2) United States contract drilling fleet: - Average 5 4 - - -
End of 5 5 period - - United States 79% - 70% (3) - drilling rig
utilization rate(2) (1) Calculated from the date of acquisition of
the Contract Drilling segment (March 18, 2010). (2) Utilization
rate calculated on a spud to rig release basis. (3) Calculated from
the date of acquisition of the United States operations (June 10,
2011). Forward-Looking Information This press release contains
certain statements or disclosures relating to Western that are
based on the expectations of Western as well as assumptions made by
and information currently available to Western which may constitute
forward-looking information under applicable securities laws. All
such statements and disclosures, other than those of historical
fact, which address activities, events, outcomes, results or
developments that Western anticipates or expects may, or will occur
in the future (in whole or in part) should be considered
forward-looking information. In some cases, forward-looking
information can be identified by terms such as "forecast",
"future", "may", "will", "expect", "anticipate", "believe",
"potential", "enable", "plan", "continue", "contemplate",
"pro-forma", or other comparable terminology. In particular,
statements regarding the completion and timing of additional
drilling and service rigs are considered forward-looking
information. The foregoing forward-looking information
assumes continued demand for "ELR" drilling rigs, no adverse change
to the oil and gas industry and no adverse change to the demand for
drilling rigs and oil and gas services. The risk factors that
could affect actual results are discussed in more detail in
Western's Annual Information Form dated April 20, 2011 and the
other documents available under Western's SEDAR profile at
www.sedar.com and include risks associated with the oil and gas
industry and demand for drilling rigs and oil and gas
services. The forward-looking information included in this
press release are made as of the date of this press release and
Western disclaims any intention or obligation to publicly update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, except as may be expressly
required by applicable securities laws. Western Energy Services
Corp. CONTACT: Dale E. Tremblay Alex MacAusland Jeffrey K.
BowersChief Executive Officer President and COO VP Finance and
CFO403.984.5929 403.984.5932 403.984.5933dtremblay@wesc.ca
amacausland@wesc.ca jbowers@wesc.ca
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