Business
Western Energy Services Corp. Provides Operational Update
Western Energy Services Corp. Provides Operational Update.
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/\n\n\nCALGARY, Feb. 22 /CNW/ - Western Energy Services Corp. (\"Western\" or the\n\"Company\") is pleased to report that recent activity levels for its\nstimulation services have been strong. The Company's subsidiary StimSol Canada\nInc. (\"Stimsol\") and the Company's Texas stimulation operations have\nexperienced strong demand for their expertise and technology, which is\nexpected to continue as the Company serves the niche market of production\noptimization through stimulation services.\n\n\nThe Company's legacy businesses of shallow coiled tubing and well testing\nexposed the Company to the volatile shallow gas and coal bed methane markets\nas well as the drilling cycle, all of which have experienced a down turn. The\nCompany's new focus on stimulation services is expected to result in less\noperational volatility and stronger financial results.\n\n\nWestern reports the following progress in the implementation of its new\nfocus on stimulation services:\n\n\n- Western's acquisition of StimSol has enabled Western to market\n proprietary solvent- acid blends and to enter the niche market of\n production optimization through stimulation services.\n\n- Western's operations in Texas, having adopted StimSol's technology,\n have become a driver for future profitable growth.\n\n- New equipment has been added to both the Canadian and US operations\n during the fourth quarter of 2006 and into 2007 including:\n\n - one nitrogen pumper;\n - three nitrogen transports;\n - four acid pumpers;\n - and four acid transports.\n\n- The Company's new facility near Abilene, Texas became operational in\n December and serves as the Company's US administration centre and\n primary equipment base.\n\n- The Company is in the process of simplifying its business processes\n and reducing its general and administrative and operational costs by:\n\n - moving all Canadian well service equipment into StimSol to achieve\n operational synergies;\n - consolidating the number of operational bases in Alberta from five\n to three and in the US from four to two, so that each operational\n base has a complete complement of equipment and trained personnel\n to ensure quality customer service;\n - reducing its general and administrative expenses, staff levels,\n and reorganizing and simplifying its business proces...