Western Energy Services Corp. Announces Completion of $75 million Bought Deal
Financing and Private Company Acquisition


CALGARY, March 18 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (TSX Venture: WRG) is pleased to announce that it has closed the previously announced $75 million bought deal financing (the "Financing") with a syndicate of underwriters co-led by Cormark Securities Inc. and Raymond James Ltd. and including FirstEnergy Capital Corp., Peters & Co. Limited and Thomas Weisel Partners Canada Inc. (collectively, the "Underwriters") and has closed the acquisition of Horizon Drilling Inc. ("Horizon") a privately held company which owns and operates oil and natural gas drilling rigs, for a total purchase price of approximately $66 million, including the assumption of debt.

Bought Deal Financing


Pursuant to the Financing, the Corporation issued 375 million common shares ("Western Shares") at a price of $0.20 per share for gross proceeds of $75 million. A fee of 5% of the gross proceeds of the Financing was paid to the Underwriters. The net proceeds of the Financing are being used to partially fund the acquisition of Horizon.

Horizon Acquisition


Western has taken up approximately 95% of Horizon's outstanding Class A shares ("Horizon Shares"), being the shares tendered to Western's offer dated March 1, 2010 to acquire all of the outstanding Horizon Shares on the basis of $1.50 for each Horizon Share (the "Horizon Offer"). Western will acquire all of the remaining Horizon Shares pursuant to the compulsory acquisition provisions of the Business Corporations Act (Alberta) (the "Compulsory Acquisition"). The purchase price for the Horizon Shares is being funded with the proceeds from the Financing. An aggregate of $39,367,500 is being paid to Horizon shareholders for the Horizon Shares taken up pursuant to the Horizon Offer and it is anticipated a further $2,062,500 will be paid to Horizon shareholders in connection with those Horizon Shares acquired pursuant to the Compulsory Acquisition.

Western continues to work towards the completion of the previously announced acquisition of Cedar Creek Drilling Ltd.


This press release contains certain statements or disclosures relating to the Company that are based on the expectations of the Company as well as assumptions made by and information currently available to the Company 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 the Company 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 terminology.

In particular, this press release makes reference to the anticipated funds to be paid to Horizon shareholders in connection with the Compulsory Acquisition and the completion of the acquisition of Cedar Creek Drilling Ltd. As such, many factors could cause the performance or achievement of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

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SOURCE Western Energy Services Corp.

For further information: For further information: Dale E. Tremblay, Chief Executive Officer, (403) 262-9439; Alex MacAusland, President & COO, (403) 262-9013; Jeffrey K. Bowers, VP Finance & CFO, (403) 262-9548

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