/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES/
CALGARY, July 20 /CNW/ - Western Energy Services Corp. ("Western") is
pleased to announce that it has entered into a letter of intent with the
shareholders of Jet Energy Control Ltd. ("JEC") to purchase JEC for
$2.5 million. Western will pay $1,000,000 cash and issue 3,000,000 common
shares valued at $0.50 per share. JEC has approximately $733,000 in long-term
debt, which Western will assume. Closing of the transaction is expected within
90 days.
"This acquisition is a strategic expansion of our well test division,"
remarked Jim McQuarrie, President and Chief Executive Officer of Western. "We
are committed to expanding this profitable business line and JEC will almost
double the number of pressure tanks we have in the field and give us critical
mass. JEC, by adding its current management and experienced field employees,
will add depth and talent to our well test team. JEC has developed an
excellent reputation with its customers during its relatively young history."
JEC, a private company based in central Alberta, had revenues for the
first three months of 2006 of $880,000. JEC specializes in providing well test
services, operates three well test suites and expects delivery of a further
suite in July 2006.
Western intends to utilize a combination of debt financing and working
capital to fund the cash portion of the purchase price. The transaction is
subject to approval by the TSX Venture Exchange, due diligence and standard
closing conditions.
Western is an oil field services company trading on the TSX Venture
Exchange under the symbol "WSV". Western current operational focuses include:
<<
- stimulation services,
- nitrogen pumping services,
- well test services,
- coiled tubing services, and
- down hole tool rentals.
>>
Western is currently active in Canada, the US Rocky Mountain region, the
southern US, and Latin America.
Forward Looking Information
This release contains certain forward-looking statements related but not
limited to the Company's expectations, intentions, plans and beliefs.
Investment advisors, shareholders and potential investors are cautioned not to
place undue reliance on forward-looking information which by its nature
involves assumptions, risks and uncertainties, both general and specific, that
contribute to the possibilities that predictions, projections, forecasts and
future events will not occur. Consequently, actual results could differ
materially from the expectations expressed in these forward-looking
statements. The Company does not assume any responsibility to update this
information for events subsequent to its preparation.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
