CALGARY, Dec. 12, 2012 /CNW/ - Western Energy Services Corp. ("Western"
or the "Company") (TSX: WRG) is pleased to announce its planned 2013
capital expenditure budget of approximately $60 million, which includes
$28 million in expansion capital and $32 million in maintenance capital
Expansion capital of $28 million includes $11 million to increase our
drilling rig fleet's pumping capacity in Canada, $8 million in rig
moving systems for our drilling rig fleet in the United States, $5
million in drill pipe and $4 million in other drilling equipment.
Maintenance capital of $32 million includes $12 million in critical
spare equipment, $10 million in drilling equipment, $6 million in drill
pipe and $4 million relating to equipment recertifications.
In addition, approximately $10 million remaining from Western's 2012
capital program is expected to be spent in 2013 for the completion of
two telescopic Efficient Long Reach double drilling rigs, one of which
is a pad drilling rig. Western will finance its 2013 capital
expenditure budget substantially from operating cash flows, while
maintaining our conservative balance sheet going into 2013 and
positioning the Company for future opportunities.
Western believes the 2013 capital budget provides a prudent use of cash
given the current operating environment. This budget demonstrates our
commitment to maintaining our equipment while at the same time
introducing further improvements to our drilling rig fleet to continue
to meet customer demands for technically advanced equipment.
Western is an oilfield service company which provides contract drilling
services through its wholly-owned subsidiaries Horizon Drilling Inc. in
Canada and Stoneham Drilling Corporation in the United States. In
addition, Western provides well servicing through its wholly-owned
subsidiary Matrix Well Servicing Inc.
Forward-Looking Statements and Information
This press release contains certain statements or disclosures relating
to Western that are based on the expectations of Western as well as
assumptions made by and information currently available to Western
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 Western 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
In particular, Western states that "its planned 2013 capital expenditure
budget of $60 million, which includes $28 million in expansion capital
and $32 million in maintenance capital expenditures." and "Western will
finance its 2013 capital expenditure budget substantially from
operating cash, while maintaining our conservative balance sheet going
into 2013 and positioning the Company for future opportunities."
The press release also describes the components of the anticipated
capital expenditures. The foregoing assumes that operating cash flow
during 2013 will be substantially sufficient to allow for such planned
capital expenditures. In addition, the planned capital expenditures,
especially expansion capital, assumes a level of demand for Western's
drilling services to support these expenditures. There is a risk that
Western could experience a decline in its business or revenues which
could have a negative impact on those planned capital expenditures.
SOURCE: Western Energy Services Corp.
For further information:
Dale E. Tremblay
Chief Executive Officer
President and COO
Jeffrey K. Bowers
VP Finance and CFO