CALGARY, Dec. 7, 2017 /CNW/ - Western Energy Services
Corp. ("Western") (TSX: WRG) is pleased to announce its 2018
capital expenditure budget of approximately $20 million, including capital spending carried
forward from 2017 of approximately $2
million. The 2018 capital expenditure budget is
expected to be comprised of $12
million of maintenance capital and $8
million of expansion capital.
Maintenance capital of $12 million
includes $9 million in the contract
drilling segment and $3 million in
the production services segment. Western continually monitors
the activity of its fleet and will adjust the planned 2018
maintenance capital as warranted.
Expansion capital of $8 million is
driven by specific customer requirements, which include upgrades
for Western's contract drilling fleet and additional oilfield
rental equipment for Western's rental division, Aero Rental
Services. Western remains committed to ensuring that funds
will only be allocated to projects where capital can generate
appropriate returns.
Western expects that its 2018 capital budget will contribute to
the preservation of its balance sheet. The planned spending
further demonstrates Western's commitment to maintaining its
premier drilling and well servicing rig fleets, while responsibly
allocating expansion capital to maximize stakeholder returns.
About Western
Western is an oilfield service company
which provides contract drilling services in Canada through its Horizon Drilling division
and in the United States through
its wholly-owned subsidiary, Stoneham Drilling Corporation. In
Canada, Western also provides well
servicing through its Eagle Well Servicing division and provides
oilfield rental services through its Aero Rental Services
division.
Forward Looking Statements and Information
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "will" and similar expressions are intended to
identify forward-looking information or statements. More
particularly and without limitation, this press release contains
forward-looking statements and information relating to Western's
planned capital expenditures and expectations of balance sheet
preservation. These forward-looking statements and information are
based on certain key expectations and assumptions made by Western.
Although Western believes that the expectations and assumptions on
which such forward-looking statements and information are based are
reasonable, undue reliance should not be placed on the
forward-looking statements and information as Western cannot give
any assurance that they will prove to be correct. Since
forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks
and uncertainties. Actual results could differ materially from
those currently anticipated due to a number of factors and risks.
These include, but are not limited to, risks associated with
general economic conditions, the demand for Western's services,
volatility in market prices for oil and natural gas and the effect
of this volatility on the demand for oilfield services generally,
currency exchange rate risk, compliance with covenants and/or
repayment obligations under the Credit Facilities and the indenture
governing the Senior Notes, changes in legislation, dependence on,
and concentration of, major customers, and the creditworthiness and
performance by the Western's counterparties and customers.
Readers are cautioned that the foregoing list of risks and
uncertainties is not exhaustive. Additional information on these
and other risk factors that could affect Western's operations or
financial results are included in Western's annual information form
and may be accessed through the SEDAR website (www.sedar.com). The
forward-looking statements and information contained in this press
release are made as of the date hereof and Western does not
undertake any obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, unless so required by
applicable securities laws.
SOURCE Western Energy Services Corp.