CALGARY, AB, Feb. 28, 2022 /CNW/ - Western Energy Services
Corp. ("Western") (TSX: WRG) announces that Alberta
Investment Management Corporation ("AIMCo"), the lender
under its second lien credit facility, has agreed to provide
Western with a further extension of the due date for the payment of
interest under the facility that was originally due on January 4, 2022 and that was extended by AIMCo to
February 28, 2022. The due date
has been extended further to March 21,
2022.
Western is continuing discussions with its lenders with
respect to a potential transaction to provide financial stability
through the current challenging industry environment in
light of its current debt obligations. The payment extension
is intended to provide Western with additional flexibility while it
continues these discussions with a view to reaching a solution to
address its financial position. There is no certainty
that Western will be successful in negotiating, entering into
or completing a new refinancing transaction prior to the
further extended payment deadline, or at all.
About Western
Western is an oilfield service company which
provides contract drilling services through its
division, Horizon Drilling in Canada, and its wholly owned subsidiary,
Stoneham Drilling Corporation in the United States. Western
provides well servicing and oilfield rental equipment
services in Canada through its wholly owned subsidiary
Western Production Services Corp.
("Western Production Services"). Western
Production Services' division, Eagle Well Servicing provides well
servicing, while its division Aero Rental Services
provides oilfield rental services.
Forward–Looking Statements and Information
This press release contains certain statements or disclosures
relating to Western that are based on the expectations of
Western as well as assumptions made by and information currently
available to Western which may constitute forward–looking
information under applicable securities laws. All information
and statements contained herein that are not clearly
historical in nature constitute forward–looking information,
and words and phrases such as "may", "will", "should", "could",
"expect", "intend", "anticipate", "believe", "estimate",
"plan", "potential", "continue", "looking to", or the negative of
these terms or other comparable terminology are generally
intended to identify forward–looking information. This
information involves known and unknown risks, uncertainties and
other factors that may cause actual results or events to
differ materially from those anticipated in such forward–looking
information.
In particular, forward–looking information in this press
release includes statements relating to a
potential refinancing transaction that Western may seek to
pursue. Such statements reflect Western's current views and
intentions with respect to future events, based on information
available to Western. In particular, these statements are
based on assumptions as to the willingness of
Western's lenders and other parties to negotiate new financing
arrangements and the continuation of current
industry conditions affecting Western's performance and
financial condition. Although Western believes that the
expectations and assumptions on which such
forward–looking statements and information are based are
reasonable, undue reliance should not be placed on
the forward–looking statements and information as Western
cannot give any assurance that they will prove to be correct.
Since forward–looking statements and information address future
events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risks. These risks include (i) the
potential further deterioration of industry conditions that
could negatively affect Western's performance and financial
condition, (ii) Western's lenders becoming unwilling to negotiate
potential refinancing transactions, and (iii) Western's
inability to meet its obligations under its credit facilities or
becoming in default under such facilities if a refinancing
transaction is not available, as well as other risk factors
are discussed under the heading "Risk Factors" in Western's
annual information form for the year ended December 31, 2020 which may be accessed
through the SEDAR website at www.sedar.com The forward–looking
statements and information contained in this press release are
made as of the date hereof and Western does not undertake any
obligation to update publicly or revise any forward–looking
statements and information, whether as a result of new
information, future events or otherwise, unless so required by
applicable securities laws.
SOURCE Western Energy Services Corp.