CALGARY, Dec. 10, 2013 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (TSX: WRG) is pleased to announce its planned 2014 capital expenditure budget of approximately $65 million, which includes $12 million in expansion capital, $40 million in maintenance capital expenditures and $13 million in carry forward from Western's 2013 capital program.
Expansion capital of $12 million mainly relates to $10 million in additional oilfield rental equipment for Western's division AERO Rental Services.
Maintenance capital of $40 million includes $20 million in drilling equipment, $10 million in critical spare equipment, and $7 million in well servicing equipment.
In addition, the $13 million of carry forward from Western's 2013 capital program is for the completion of one telescopic Efficient Long Reach double drilling rig, as well as the completion of two 1,500 hp AC pad conversions in the United States.
Western believes the 2014 capital budget provides a prudent use of cash resources and ensures that it has the flexibility to execute on strategic opportunities as they arise. This budget demonstrates the Company's commitment to maintaining Western's premier drilling and service rig fleet while expanding Western's strategic presence in the oilfield rental equipment market. Western will continue to evaluate and expand its operations in a prudent manner and make any required adjustments to its capital program as these opportunities unfold in 2014.
Additionally, Western is pleased to announce that its first duel-fuel and second convertible pad rig will commence operations early in January 2014. Upon the completion of Western's 2013 capital program, Western's fleet of 54 drilling rigs and 65 service rigs will include 5 fully configured pad drilling rigs, 3 in the United States and 2 in Canada.
Western is an oilfield service company which provides contract drilling services in Canada through its division Horizon Drilling and in the United States through its wholly-owned subsidiary Stoneham Drilling Corporation. In addition, Western provides well servicing in Canada through its Eagle Well Servicing division and provides oilfield rental services in Canada through its AERO Rental Services division.
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 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, forward-looking information in this press release includes, but is not limited to, statements relating to Western's 2014 capital budget for maintenance and expansion capital, a portion of the 2013 capital program being carried forward to 2014 and the deployment into the field of certain drilling rigs.
Although Western believes that the expectations and assumptions on which such forward-looking statements and information are based on are reasonable, undue reliance should not be placed on the forward-looking statements and information as Western cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, general industry, economic, market and business conditions. Readers are cautioned that the foregoing list of risks, uncertainties and assumptions are not exhaustive. Additional information on risks, uncertainties, assumptions and other risk factors that could affect Western's operations and financial results are included in Western's annual information form which may be accessed through the SEDAR website at www.sedar.com. The forward-looking statements and information contained in this press release are made as of the date hereof and Western does not undertake any obligation to update publicly or revise any forward-looking statements and information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE: Western Energy Services Corp.
For further information:
President and CEO
Jeffrey K. Bowers
Senior VP Finance and CFO