TSX Venture: "DAL"
EDMONTON, Feb. 9, 2012 /CNW/ - John Babic, President and CEO of Dalmac Energy Inc. ("Dalmac") (TSXV: DAL) is pleased to provide a corporate update to shareholders. The Company had a very successful third quarter as a result of its proactive corporate strategy, increased activity levels in the industry, and improved charge out rates. Management is very pleased to report that Dalmac is well on-track to significantly exceed its revenue forecast of $30 million for the fiscal 2012 year ending April 30, 2012. The Company is confident that current positive industry indicators will continue to translate into higher revenues and earnings for Dalmac throughout the remainder of fiscal 2012 and well into fiscal 2013. The Company intends to report its third quarter financial results in mid to early March 2012.
Dalmac further reports that the majority of its previously issued warrants were exercised at the end of January 2012 raising additional gross proceeds of $744,822. About 65% of the subscribers for these warrants were insiders. The proceeds were used to reduce existing debt and to improve the balance sheet. The Company's debt obligations have consequently been decreased by $649,584.
Utilization rates in the industry are continuing at record levels and the forecast for the upcoming year is expected to continue on an equally strong footing. The metrics driving the current activity stem mainly from strong oil prices. The current weakness in natural gas prices has been offset by the producers making a shift from natural gas to liquids and crude oil. Concurrent with this development is the resulting trend towards more complex well completions which are deeper and take longer to drill. Over the past decade, vertical wells would yield about 500 meters of exposure to a formation whereas the new horizontal wells are yielding 2,000 to 4000 directional meters in optimal positions within the formations. This trend is serving to provide an increased revenue stream for Dalmac's servicing of the drilling and production sectors.
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