CALGARY, AB, Dec. 30, 2021 /CNW/ - Western Energy Services
Corp. ("Western") (TSX: WRG) announces that Alberta
Investment Management Corporation ("AIMCo"), the lender
under its second lien credit facility, has agreed to extend the due
date for the payment of interest under the facility that Western
would have been required to pay on January
4, 2022 to February 28,
2022.
Western is currently in discussions with its lenders with
respect to potential transactions to provide long–term financial
stability through the current challenging industry
environment. The payment extension is intended to provide
Western with additional flexibility while it explores these
potential opportunities. There is no certainty as to
whether Western will be successful in negotiating or completing
new refinancing transactions prior to the extended payment
deadline or at all.
About Western
Western is an oilfield service company which
provides contract drilling services through its
division, Horizon Drilling in Canada, and its wholly owned subsidiary,
Stoneham Drilling Corporation in the United States. Western
provides well servicing and oilfield rental equipment
services in Canada through its wholly owned subsidiary
Western Production Services Corp.
("Western Production Services"). Western
Production Services' division, Eagle Well Servicing provides well
servicing, while its division Aero Rental Services
provides oilfield rental services.
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 information
and statements contained herein that are not clearly
historical in nature constitute forward–looking information,
and words and phrases such as "may", "will", "should", "could",
"expect", "intend", "anticipate", "believe", "estimate",
"plan", "potential", "continue", "looking to", or the negative of
these terms or other comparable terminology are generally
intended to identify forward–looking information. This
information involves known and unknown risks, uncertainties and
other factors that may cause actual results or events to
differ materially from those anticipated in such forward–looking
information.
In particular, forward–looking information in this press
release includes statements relating to potential refinancing
transactions that Western may seek to pursue. Such statements
reflect Western's current views and intentions with respect to
future events, based on information available to Western. In
particular, these statements are based on assumptions as to the
willingness of Western's lenders and other parties to
negotiate new financing arrangements and the continuation of
current industry conditions affecting Western's performance
and financial condition. Although Western believes that the
expectations and assumptions on which such
forward–looking statements and information are based on 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 risks include (i) the
potential further deterioration of industry conditions that
could negatively affect Western's performance and financial
condition, (ii) Western's lenders becoming unwilling to negotiate
potential refinancing transactions, and (iii) Western's
inability to meet its obligations under its credit facilities
such that further financing is not available, as well as other
risk factors are discussed under the heading "Risk Factors" in
Western's annual information form for the year ended December 31, 2020 which may be accessed
through the SEDAR website at 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 and information, whether as a result of new
information, future events or otherwise, unless so required by
applicable securities laws.
SOURCE Western Energy Services Corp.