Business
Western Energy Services Corp. Announces Q1 2009 Results
/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/ CALGARY,...
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE\n UNITED STATES/\n\n\nCALGARY, May 29 /CNW/ - Western Energy Services Corp. (WRG on the TSXV),\nCalgary, Alberta is pleased to announce its results for the first quarter of\n2009.\n\n\nThe operational results for the quarter ended March 31, 2009 are:\n\n\n- Corporate debt held by Institutional third party lenders was reduced\n by $1,108,720 or 13.2% in the quarter.\n\n- In the quarter, the Company continued with its program to further\n reduce costs by cutting staff, implementing salary rollbacks, selling\n non-core assets and cutting certain administrative costs. On a go-\n forward basis monthly operating costs have been reduced by $125,300\n since the end of second quarter of 2008 and general and\n administrative ("G&A") expenses are down 27.5% from the comparable\n quarter in 2008.\n\n- Quarterly revenues declined 36% from the corresponding quarter in\n 2008 reflecting the bleak state of the oil and gas services sector in\n North America.\n\n- Declining revenues resulted in reduced operating margins as fixed\n costs comprised a larger share of the Company's overall cost\n structure.\n\n- The poor operating conditions have placed a major burden on the\n Company's liquidity position. As a consequence the Company has\n initiated discussions with its lenders with a goal of restructuring\n its debt obligations. At this time the possible outcome of those\n discussions can not be determined.\n\n\nThe operating environment for the oil and gas services sector has\ncontinued to deteriorate in the first part of Q2. Management's immediate focus\nis to maintain cash and liquidity to ensure the Company survives this severe\ndownturn. Management and Board Members feel that a turnaround for the\nCompany's services will occur later this year. In particular it is felt that\ndemand for the Company's oil well remediation services should increase given\nthe 92% rise in the oil commodity price since the beginning of the year.\n\n\nManagement will continue to focus on improving its business operations in\n2009, reacting to the economic slowdown in a proactive manner that will\nrealize upon the Company's strength of providing services to the less cyclical\nproduction side of the oil and gas industry. The Company expects that the\ndrilling aspect of the in...