Business
Western Energy Services Corp. Announces 2015 Capital Budget and Normal Course Issuer Bid
CALGARY , Dec. 15, 2014 /CNW/ - Western Energy Services Corp. (the " Company " or " West...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\nCALGARY, Dec. 15, 2014 /CNW/ - Western Energy Services Corp. (the \"Company\" or \"Western\") (TSX:WRG) is pleased to announce its planned 2015 capital expenditure\n budget and a Normal Course Issuer Bid (the \"Bid\").\n\n\nCapital Budget\nWestern's planned 2015 capital expenditure budget is expected to total\n approximately $64 million, which includes $22 million in carry forward\n from Western's 2014 capital program, $6 million in expansion capital,\n and $36 million in maintenance capital.\n\n\nThe $22 million of carry forward from Western's 2014 capital program\n relates to the completion of two 5,000m telescopic ELR double drilling\n rigs, one 6,000m ELR AC triple pad drilling rig and one slant well\n servicing rig.  Due to the recent decline in commodity prices, and the\n potential for an extended downturn in oilfield service activity, one of\n the previously announced 6,000m ELR AC triple pad drilling rigs has\n been postponed.\n\n\nThe expansion capital of $6 million relates to additional oilfield\n rental equipment for Western's division Aero Rental Services.\n\n\nThe maintenance capital of $36 million includes $27 million for the\n contract drilling segment and $9 million for the production services\n segment.  Included in the maintenance capital budget is $6 million\n related to rotational equipment.\n\n\nWestern believes the 2015 capital budget provides a prudent use of cash\n resources and ensures that it continues to maintain its balance sheet\n flexibility allowing for the execution on strategic opportunities as\n they arise, or alternatively adjust downward if necessary should there\n be a prolonged downturn in oilfield service activity.  This budget\n demonstrates the Company's commitment to maintaining Western's premier\n drilling and well servicing rig fleets while expanding Western's\n strategic presence in the oilfield rental equipment market.  Western\n will continue to evaluate and expand its operations in a disciplined\n manner and make any required adjustments to its capital program as\n customer demand improves.\n\n\nNormal Course Issuer Bid\nThe Company also announces that a Notice of Intention to make a Normal\n Course Issuer Bid, which has been approved by its Board of Directors\n (the \"Board\"), has been filed with and accepted by the Toronto Stock Exchange (the\n \"TSX\")...