DALMAC ENERGY INC. TSX Venture: "DAL"
EDMONTON, June 7, 2012 /CNW/ - John Babic, President and CEO of Dalmac Energy Inc. ("Dalmac") (TSXV: DAL) is pleased to announce that revenues for fiscal 2012 ended April 30, 2012 will exceed $35 million. Revenues were expected to reach $30 million for the year, but higher utilization rates and increased demand has kept Dalmac running at record levels. Full 2012 financial results are expected to be released in July 2012.
The Canadian Association of Oilwell Drilling Contractors (CAODC) Industry recently released its first quarter update highlighting strong utilization rates for drilling equipment as forecast. The number of wells projected to be drilled in Dalmac's operating area remains robust. CAODC further commented that the industry continues to drill increasingly complex horizontal wells and raised its forecast for average days per well to 12. These are all extremely positive trends for Dalmac for the service work associated with getting the new wells completed and for the trucking and handling of the production in the post completion phase.
Dalmac has positioned itself to meet the escalating demand for its services by recently investing over $2.0 million in capital expenditures to increase the number of pieces of rolling stock equipment from 169 to 179 and increasing the number of oilfield rental equipment from 250 pieces to 270. The Company has commenced working with a number of new clients on substantial drilling programs and remains committed for the use of the majority of its existing equipment throughout the remainder of calendar 2012. The new equipment will be financed through operating cash flow and revolving bank lines. Management is confident that the positive industry indicators and new equipment purchases will continue to translate into higher revenues and earnings for Dalmac in fiscal 2013.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. We seek Safe Harbor.
For further information: