CALGARY, Feb. 24 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") announced today that it has reviewed its options pertaining to financing proposed acquisitions and Western has determined that if a financing cannot be completed at $0.20 per share, due to discount restrictions imposed by the TSX Venture Exchange rules that limit any discount to no more than 25% of the market price, the Company may not be in a position to complete the proposed acquisitions and to execute its strategic plan.
Based on the information herein, if one or more of the proposed acquisitions cannot be completed due to the inability to complete a financing the Corporation will only have limited assets from which to operate.
In addition Western announces that it has amended and refilled its unaudited interim financial statements and management's discussion and analysis (the "Filings") for the interim period ended September 30, 2009. The Filings have been amended to remove the notice that there was no involvement by auditors as the statements have now been reviewed by Western's auditor. The Filings have also been amended to reflect corrections to various classifications on the balance sheet and statement of cash flows, as well as enhanced note disclosure.
Western would also like to provide an update on its US operations and announces that due to the significant downturn in industry demand, Western will be ceasing its current operations in the United States effective immediately. Western has redeployed assets to its Canadian operations and completed the sale of a number of assets in the United States to date and is currently negotiating sales for the balance of these assets with various parties. The remaining asset sales are expected to be sold at less than their carrying values and will result in a write down. Western expects those sales to be concluded by April 30, 2010. An update of those transactions and the extent of the write down will be provided at a later date.
About Western Energy Services Corp.
The Company is a public energy services corporation operating in Western Canada and which trades on the TSX Venture Exchange under the symbol "WRG".
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 sale of assets and the expectation that such sales will result in a write down.
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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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