/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, March 18 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (TSX Venture: WRG) is pleased to announce that it has closed the previously announced acquisition of Cedar Creek Drilling Ltd. ("Cedar Creek"), a privately held company which owns and operates oil and natural gas drilling rigs.
Western has taken up 100% of Cedar Creek's outstanding Class A common shares ("Cedar Creek Shares"), being the shares tendered to Western's offer dated March 2, 2010 to acquire all of the outstanding Cedar Creek Shares on the basis of 2.66 Western Shares for each Cedar Creek Share (the "Cedar Creek Offer"). An aggregate of 20,517,331 Western Shares are being issued to Cedar Creek shareholders pursuant to the Cedar Creek Offer.
The assets of Cedar Creek include 3 telescopic double drilling rigs with a depth rating of 3,500 metres and 750 hp drawworks. All of the Cedar Creek drilling rigs are well suited for horizontal drilling.
Pro Forma Asset Base
Pursuant to the acquisitions of Horizon Drilling Inc. ("Horizon") and Cedar Creek, Western now has a fleet of 11 drilling rigs which are, on average, less that 4 years old, have modern designs, move and rig-up efficiently and enjoy a premium customer base. Western believes the assets will be in high demand as exploration and development of key resource plays requiring horizontal drilling continues to increase. Western also anticipates very little integration risk with Horizon and Cedar Creek as management is intimately familiar with the assets and believes operational efficiencies can be achieved with larger scale.
Western currently has approximately 527.6 million shares outstanding (578.1 million on a fully diluted basis) and approximately $5.0 million of net debt.
This press release contains certain statements or disclosures relating to the Company that are based on the expectations of the Company as well as assumptions made by and information currently available to the Company which may constitute forward-looking information under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that the Company anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking information. In some cases, forward-looking information can be identified by terms such as "forecast", "future", "may", "will", "expect", "anticipate", "believe", "potential", "enable", "plan", "continue", "contemplate", "pro-forma", or other comparable terminology.
In particular, this press release makes reference to the anticipated demand for its assets and the integration risk of Horizon and Cedar Creek. As such, many factors could cause the performance or achievement of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Western Energy Services Corp.
For further information: For further information: Dale E. Tremblay, Chief Executive Officer, (403) 262-9439; Alex MacAusland, President & COO, (403) 262-9013; Jeffrey K. Bowers, VP Finance & CFO, (403) 262-9548