Western Energy Services Corp. Announces 2013 Capital Budget
CALGARY,
Dec. 12, 2012 /CNW/ - Western Energy
Services Corp. ("Western" or the "Company") (TSX: WRG) is pleased
to announce its planned 2013 capital expenditure budget of
approximately $60 million, which
includes $28 million in expansion
capital and $32 million in
maintenance capital expenditures.
Expansion capital of $28
million includes $11 million
to increase our drilling rig fleet's pumping capacity in
Canada, $8
million in rig moving systems for our drilling rig fleet in
the United States, $5 million in drill pipe and $4 million in other drilling equipment.
Maintenance capital of $32 million includes $12
million in critical spare equipment, $10 million in drilling equipment, $6 million in drill pipe and $4 million relating to equipment
recertifications.
In addition, approximately $10 million remaining from Western's 2012 capital
program is expected to be spent in 2013 for the completion of two
telescopic Efficient Long Reach double drilling rigs, one of which
is a pad drilling rig. Western will finance its 2013 capital
expenditure budget substantially from operating cash flows, while
maintaining our conservative balance sheet going into 2013 and
positioning the Company for future opportunities.
Western believes the 2013 capital budget
provides a prudent use of cash given the current operating
environment. This budget demonstrates our commitment to
maintaining our equipment while at the same time introducing
further improvements to our drilling rig fleet to continue to meet
customer demands for technically advanced equipment.
Western is an oilfield service company which
provides contract drilling services through its wholly-owned
subsidiaries Horizon Drilling Inc. in Canada and Stoneham Drilling Corporation in
the United States. In
addition, Western provides well servicing through its wholly-owned
subsidiary Matrix Well Servicing Inc.
Forward-Looking Statements and
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, Western states that "its planned
2013 capital expenditure budget of $60
million, which includes $28
million in expansion capital and $32
million in maintenance capital expenditures." and "Western
will finance its 2013 capital expenditure budget substantially from
operating cash, while maintaining our conservative balance sheet
going into 2013 and positioning the Company for future
opportunities."
The press release also describes the components
of the anticipated capital expenditures. The foregoing
assumes that operating cash flow during 2013 will be substantially
sufficient to allow for such planned capital expenditures. In
addition, the planned capital expenditures, especially expansion
capital, assumes a level of demand for Western's drilling services
to support these expenditures. There is a risk that Western
could experience a decline in its business or revenues which could
have a negative impact on those planned capital expenditures.
SOURCE Western Energy Services Corp.