CALGARY, Aug. 28 /CNW/ - New West Energy Services Inc. (TSX-V:NWE). The
management of New West Energy Services Inc. ("New West") is very pleased to
announce its fiscal 2008 results which are a dramatic turnaround with revenues
increasing 439% over the 2007 results. For the year ended April 30, 2008, New
West posted net earnings of $446,631 ($0.01 per share) on revenues of
$7,229,233. The net profit of $446,631 included a deduction of $94,146 for
stock based compensation for options vested during the year and employee bonus
expense of $60,000. This compares with a net loss of $1,251,347 ($0.07 per
share) on revenues of $1,340,423 for the year ended April 30, 2007. The loss
of $1,251,347 included a deduction of $11,200 for stock based compensation of
options vested during the year ended April 30, 2007.
For the three months ended April 30, 2008, New West posted a net loss of
$27,053 on revenues of $1,428,482. The loss included a deduction for stock
based compensation for options of $16,711 and employee bonuses expenses of
$60,000 for the period. This loss compares with a net loss of $469,698 on
revenues of $312,841 for the three months ended April 30, 2007.
Revenues for the three months ended January 31, 2008 were comprised of
21.4% or $305,828 general drilling fluid sales and proprietary product sales
to non-oilsands customers of New West's wholly-owned subsidiary, New West
Drilling Fluids Inc. ("NWDF"). The balance of revenue of 78.6%, or $1,122,654,
consisted of SAGD ("steam assisted gravity drainage") sales to the Alberta
oilsands industry. NWDF continued to set record pace during the quarter on a
major SAGD contract using its patented Bitudril System. This project was
completed in May of 2008 and its success is largely attributed to its patented
technology and experienced field personnel. NWDF is hopeful of obtaining new
SAGD clients this fall and winter when several oil companies with oil sands
leases are preparing to start up operations.
NWDF continues to be pro-active environmentally in the industry, pursuing
new technologies for cleaning up oilsands SAGD waste drill cuttings. In August
of 2007 NWDF entered into an agreement with a private Alberta company to test
a new product to neutralize these wastes. Lab tests have been completed and
NWDF plans to start field tests this fall/winter under the guidance of
regulatory authorities. NWDF's intention is to receive approval for
landfilling the treated cuttings on a more sustainable basis than at present
and eventually be able to use the inert waste product as construction material
for on-site road and drill pad construction.
As such, the oilsands represents two very high priority growth
opportunities for NWDF, firstly providing drilling fluid/engineering services
for SAGD drilling and secondly, cleaning up the waste drill cuttings.
NWDF is also diversifying into another environmentally related business
in the oil industry. As reported in New West's Press Release dated July 28,
2008, NWDF entered into a Letter of Intent with Terralog Technologies Inc. of
Calgary, Alberta (a private company) to acquire 100% of the outstanding
Terralog shares and 100% of its subsidiary company PT Tereralog Teknologi
Indonesia. Terralog is an international company that specializes in petroleum
geo-mechanics and deep well disposal waste management using slurry fracture
injection. The transaction is subject to due diligence by both parties, third
party consents, the approval of the shareholders of New West, the successful
raising of funds to finance the merger and necessary regulatory approvals. New
West is excited about the synergies of the combined entity and believes it has
the potential to become a leader in the oil and gas environmental business.
Additional information on New West and NWDF is available on SEDAR at
www.sedar.com and on NWDF's website at www.newwestdf.com.
On behalf of the Board of Directors of
NEW WEST ENERGY SERVICES INC.
A. JOSEPH SCARLETT
Certain information contained in this press release, including
information and statements which may contain words such as "estimates",
"would", "will", "contemplates", "expects" and similar expressions and
statements relating to matters that are not historical facts, are
forward-looking information including, but not limited to, information as to
the completion of the transaction between New West and TTI.
This forward-looking information is based on certain material factors,
assumptions and analyses made by New West in light of its experience and its
perception of historical trends, current conditions and expected future
developments as well as other factors it believes are appropriate in the
circumstances. However, whether actual results, performance or achievements
will conform with New West's conclusions, forecasts, projections, expectations
and predictions expressed or implied by the forward-looking information in
this press release is subject to known and unknown risks and uncertainties
which could cause actual results to differ materially from New West's
conclusions, forecasts, projections, expectations and predictions expressed or
implied by the forward-looking information in this press release, including:
the ability to obtain new SAGD clients, receipt of approval for landfilling
cuttings, that the transaction between TTI and New West may not close for
various reasons including but not limited to, on account of conditions of
closing not being fulfilled, the failure to obtain regulatory or third party
approval, the inability to raise the necessary funds to complete the
transaction or the transaction may not be approved by the shareholders of New
West. Additional risks may be described in New West's Annual Report for the
most recently completed financial year end which may be found on SEDAR at
www.sedar.com. If any of the above risks or uncertainties materialize, or if
the material factors, assumptions and analyses applied by New West are
incorrect, actual results may vary materially from those expected in the
forward-looking information in this press release.
Consequently, all of the forward-looking information contained in this
press release is qualified by these cautionary statements and there can be no
assurance that the actual results or developments anticipated by New West
expressed or implied by the forward-looking information in this press release
will be realized or, even if substantially realized, that they will have the
expected consequences to or effects on New West or its business operations.
New West assumes no obligation, except as required by law, to update publicly
any such forward-looking information, whether as a result of new information,
future events or otherwise. Readers should not place undue reliance on
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this press release.
For further information:
For further information: Richard J. Collens, Chief Financial Officer,
Telephone: (403) 263-7555, Email: email@example.com