VANCOUVER, March 31 /CNW/ - New West Energy Services Inc. (TSX-V:NWE).
New West Energy Services Inc. ("New West") is pleased to announce net earnings
of $254,677 ($0.01 per share) on revenues of $3,268,993 for the quarter ended
January 31, 2008. The current quarter earnings include a stock based
compensation deduction of $77,435 for options vested during the quarter. This
compares with a net loss of $354,596 ($0.01 per share) on revenues of $298,521
for the quarter ended January 31, 2007 that also included a stock based
compensation deduction of $11,200 for options vested during the quarter.
For the nine months ended January 31, 2008, New West posted net earnings
of $473,684 ($0.01 per share) on revenues of $5,800,751. This compares with a
net loss of $781,649 ($0.02 per share) on revenues of $1,027,638 for the nine
months ended January 31, 2007.
Revenues for the three months ended January 31, 2008 consisted of
$2,340,837 (72%) general drilling fluid and proprietary product sales to its
non-oilsands customers and $928,156 (28%) of SAGD ("steam assisted gravity
drainage") sales to the Alberta oilsands industry. New West is now eight
months into a major SAGD contract using its patented Bitudril System. This
project, originally planned to take 18 months to complete, is now expected to
be completed by the end of April 2008. This is partially due to its patented
technology and field personnel setting a record pace in completing SAGD wells
in the area.
Several oil companies with oilsands leases are preparing to start up
operations this fall and in the spring of 2009. There is increased core
drilling activity currently in the oilsands signifying companies will be
establishing locations to commence SAGD production in the foreseeable future.
New West is directing its efforts toward obtaining new SAGD clients in 2008.
The current SAGD contract with a major oil company that is expected to be
completed in April 2008 is expected to start up again with a new drilling
program in November 2008.
New West continues to be environmentally pro-active in pursuing new
technologies for cleaning up oilsands SAGD waste drill cuttings and lime
sludge waste from the up-grader plants. In August 2007, New West entered into
an agreement with a private Alberta company to test a new product to
neutralize these wastes. Five large oilsands operators are supporting New
West's efforts to find an economic and environmental answer to the significant
and increasing problem of cuttings and sludge waste disposal.
The oilsands represents two very high priority growth opportunities for
New West, firstly providing drilling fluid/engineering services for SAGD
drilling and secondly, cleaning up the waste drill cuttings and lime sludge
from the up-grader tailing ponds. New West moved its laboratory to a larger,
more secure site in south-east Calgary in late 2007. New West is currently
testing various chemical mixtures to neutralize the drill cuttings and sludge
to meet Alberta Environment requirements.
Additional company information is available from the management of New
West's wholly owned subsidiary, New West Drilling Fluids Inc. (contact Dick
Collens at 403.263.7555), and on SEDAR at www.sedar.com.
On behalf of the Board of Directors of
NEW WEST ENERGY SERVICES INC.
A. JOSEPH SCARLETT
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this
For further information:
For further information: Dick Collens, (403) 263-7555