Business
Western Energy Services Corp. releases second quarter 2010 financial and operating results
Western Energy Services Corp. releases second quarter 2010 financial and operating results
About this update from Western Energy Services Corp.
[{"type":"text","content":"\n\n\n\n Aug. 18, 2010 (Canada NewsWire Group) -- \n\n \n \n \nTR.cnwUnderlinedCell TD {\n BORDER-BOTTOM: #000000 1px solid\n}\nTR.cnwDoubleUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px double\n}\nTR.cnwBoldUnderlinedCell TD {\n BORDER-BOTTOM: #000000 3px solid\n}\nTD.cnwUnderlinedCell {\n BORDER-BOTTOM: #000000 1px solid\n}\nTD.cnwDoubleUnderlinedCell {\n BORDER-BOTTOM: #000000 3px double\n}\nTD.cnwBoldUnderlinedCell {\n BORDER-BOTTOM: #000000 3px solid\n}\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n\nCALGARY, Aug. 18 /CNW/ - Western Energy Services Corp. ("Western" or the "Company") (TSX Venture: WRG) is pleased to release its second quarter 2010 financial and operating results. Additional information relating to the Company, including the Company's financial statements and management's discussion and analysis for the three and six months ended June 30, 2010 will be available on SEDAR at www.sedar.com.\n\n\n >\n\n\nOverall Performance and Results of Operations\n\nWestern is an energy services company with operations in two business units: contract drilling and production services. Operations in the contract drilling business unit are conducted through Western's wholly own subsidiary Horizon Drilling Inc., which was acquired on March 18, 2010. Operations in the production services business unit are conducted through Western's wholly own subsidiary StimSol Canada Inc.\nThe drilling industry in Canada has continued to see improved activity throughout 2010, specifically the demand for assets that have the ability to drill long reach horizontal wells safely and efficiently. During the second quarter of 2010, industry average utilization was 19%, as compared to 11% in the prior year. Utilization in Western's contract drilling segment averaged an industry leading 46% in the second quarter of 2010.\nAlthough the price for natural gas remains soft, oil prices have increased by 31% over 2009 levels. This has resulted in a 65% increase in the number of oil wells drilled in Canada in 2010 relative to 2009. This increased demand for oil, along with an emphasis on liquids rich natural gas, has primarily resulted in the drilling of horizontal wells in both conventional and unconventional resource plays. Since the acquisition of Horizon Drilling Inc. ("Hor...