Global Energy Services Ltd. releases Financial Results for the first quarter 2011

TSX-V: "GLK"                                                            Shares Outstanding   29,636,859  

CALGARY, June 28, 2011 /CNW/ - The Board of Directors of Global Energy Services Ltd. ("Global") located in Calgary, Alberta announces its quarterly financials.

       
Three months ended March 31 2011 Consolidated   2010 Consolidated
  $   $
Revenue 1,856,123   2,240,434
Expenses 1,412,430   1,578,492
Development costs      22,063   37,524
Segment Income 421,630   624,418
Stock-based compensation expense      17,294   8,943
Interest      16,532   17,889
Amortization and write-downs      136,782   109,927
Income tax expense (recovery)      64,835   123,403
Net Income      186,186   364,256
Capital expenditures      65,000   143,535
Total assets      5,214,514   5,328,453

Highlights of the first quarter included:

  • Completion of a strategic business plan with a focus on the three to five year horizon which included an independent valuation report of the whole company.
  • Global had a slightly weaker first quarter in 2011 as compared to the first quarter of 2010. The drop in performance results primarily from the 2011 version of a winter drilling project being a faction of the size of the 2010 project. This occurred against a backdrop of a steady improvement of activity in the oil and gas exploration industry which moderated the change between the respective quarters one results. Due to the stubbornly low gas prices, the results in the production services segment continued to generate losses.
  • Announced an arm's length letter of intent agreement with Stellarton Technologies Inc. ("Stellarton") to negotiate the acquisition of the business and assets of Stellarton.  Global contemplates paying consideration of $1,500,000 by the issuance of approximately 9,000,000 Global common shares. The business assets include optimization equipment, patents, copyrights, trademarks and machine shop equipment.
  • On June 23, 2011 the agreement was finalized and the company's operational amalgamation was initiated. As previously released Global will incorporate key staff members, Stellarton's manufacturing facility in Edmonton, the optimization inventory and key items of intellectual property.

Global Energy Services Ltd. is an innovative oilfield service company that provides production services and communications solutions to the oil and gas industry. The production services segment utilizes its patented Activator Hydraulic Submersible Pump ("HSP") to enhance and increase ultimate production in both conventional and unconventional gas, oil, and CBM wells. Global was founded in 1994 and is listed on the TSX-V.

More information about Global Energy Services can be found at http://www.global-energy.ca

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Global Energy Services Ltd.

For further information:

Mr. Eric. Laing President and Chief Executive Officer
Mr. Don Jorgensen, Vice President Finance & Chief Financial Officer
Global Energy Services Ltd.
#10, 1220 -59th. Ave. SE
Calgary, Alberta T2H 2M4
Tel: (403) 243-0820
Fax: (403) 243-3425
Email: djorgensen@global-energy.ca
Email: elaing@stellartontech.com
Web site at: www.global-energy.ca

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Global Energy Services Ltd.

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