Mar. 7, 2011 (Canada NewsWire Group) --
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, March 7 /CNW/ - Western Energy Services Corp. ("Western" or "the Company") (TSX Venture: WRG) is pleased to provide an update with regards to its strong operating results.
HIGHLIGHTS:
- Fleet of 24 modern, fully crewed drilling rigs, 100% of which are currently being utilized;
- Of the 24 rig fleet, 88% (21 rigs) are Efficient Long Reach ("ELR") rigs ideally suited for horizontal drilling in the key resource plays in Western Canada;
- Utilization in the contract drilling subsidiary Horizon Drilling Inc. ("Horizon") well exceeded industry average utilization rates for Q4 2010, January 2011 and February 2011;
- Continued strong performance from our production services subsidiary StimSol Canada Inc. ("Stimsol"); and
- Commenced construction of Western's 25th rig (4,500m telescopic double ELR rig) anticipated to be operational in early Q4 2011.
Record Operating Activity
Western currently has a fleet of 24 modern, fully crewed drilling rigs,
100% (including move days) of which are being utilized at present.
Western's newest rig, a 4,500m telescopic double ELR, was successfully
fully crewed during the peak employment demand of the drilling season
and spudded its first well on March 4, 2011.
| Operating Highlights | Q4 2010 | January 2011 | February 2011 | |
| Contract Drilling | ||||
| Contract drilling rig fleet (# of rigs at end of period) | 22 | 23 | 24 | |
| Drilling rig utilization rate (spud to rig release) | 65% | 87% | 91% | |
| CAODC industry average utilization rate (spud to rig release) | 50% | 66% | 74% | |
| Production Services | ||||
| Jobs completed | 885 | 379 | 373 | |
Stimsol experienced a strong increase in operating activity due to high industry demand for fluid and pumping services. The number of jobs completed in production services increased by 147% in Q4 2010, by 72% in January 2011 and by 26% in February 2011 as compared to the same prior year periods.
Construction of 25th Rig
Western is also pleased to announce that it has commenced the
construction of its 25th rig which is anticipated to be operational in early Q4 2011 and will be
under a four year term contract.
Release of 2010 year end results
Western expects to release its Q4 and year end 2010 financial and
operational results on or about April 13, 2011.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
Western Energy Services Corp.
900, 606 - 4th Street SW
Calgary, AB T2P 1T1
Ph: 403.984.5916
Fax: 403.984.5917
| Dale E. Tremblay Chief Executive Officer 403.984.5929 dtremblay@wesc.ca | Alex MacAusland President & COO 403.984.5932 amacausland@wesc.ca | Jeffrey Bowers VP Finance & CFO 403.984.5933 jbowers@wesc.ca |
