Business
Western Energy Services Corp. Purchases Jet Energy Control Ltd.
Western Energy Services Corp. Purchases Jet Energy Control Ltd..
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/\n\nCALGARY, July 20 /CNW/ - Western Energy Services Corp. (\"Western\") is\npleased to announce that it has entered into a letter of intent with the\nshareholders of Jet Energy Control Ltd. (\"JEC\") to purchase JEC for\n$2.5 million. Western will pay $1,000,000 cash and issue 3,000,000 common\nshares valued at $0.50 per share. JEC has approximately $733,000 in long-term\ndebt, which Western will assume. Closing of the transaction is expected within\n90 days.\n\"This acquisition is a strategic expansion of our well test division,\"\nremarked Jim McQuarrie, President and Chief Executive Officer of Western. \"We\nare committed to expanding this profitable business line and JEC will almost\ndouble the number of pressure tanks we have in the field and give us critical\nmass. JEC, by adding its current management and experienced field employees,\nwill add depth and talent to our well test team. JEC has developed an\nexcellent reputation with its customers during its relatively young history.\"\nJEC, a private company based in central Alberta, had revenues for the\nfirst three months of 2006 of $880,000. JEC specializes in providing well test\nservices, operates three well test suites and expects delivery of a further\nsuite in July 2006.\nWestern intends to utilize a combination of debt financing and working\ncapital to fund the cash portion of the purchase price. The transaction is\nsubject to approval by the TSX Venture Exchange, due diligence and standard\nclosing conditions.\n\nWestern is an oil field services company trading on the TSX Venture\nExchange under the symbol \"WSV\". Western current operational focuses include:\n\n>\n\nWestern is currently active in Canada, the US Rocky Mountain region, the\nsouthern US, and Latin America.\n\nForward Looking Information\n\nThis release contains certain forward-looking statements related but not\nlimited to the Company's expectations, intentions, plans and beliefs.\nInvestment advisors, shareholders and potential investors are cautioned not to\nplace undue reliance on forward-looking information which by its nature\ninvolves assumptions, risks and uncertainties, both general and specific, that\ncontribute to the possibilities that predictions, projections, forecasts and\nfuture events will not occur. Consequently, actual resul...