CALGARY, AB, Feb. 28, 2022 /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 provide Western with a further extension of the due date for the payment of interest under the facility that was originally due on January 4, 2022 and that was extended by AIMCo to February 28, 2022.  The due date has been extended further to March 21, 2022.

Western is continuing discussions with its lenders with respect to a potential transaction to provide financial stability through the current challenging industry environment in light of its current debt obligations. The payment extension is intended to provide Western with additional flexibility while it continues these discussions with a view to reaching a solution to address its financial position. There is no certainty that Western will be successful in negotiating, entering into or completing a new refinancing transaction prior to the further 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 a potential refinancing transaction 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 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 or becoming in default under such facilities if a refinancing transaction 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 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.

Copyright 2022 Canada NewsWire

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