New West Energy Services Inc. Announces Its Second Quarter Results
December 30 2013 - 4:57PM
Marketwired
New West Energy Services Inc. Announces Its Second Quarter Results
CALGARY, ALBERTA--(Marketwired - Dec 30, 2013) - New West Energy
Services Inc. (TSX-VENTURE:NWE) (the "Corporation") is pleased to
announce the financial results for the Corporation for its second
quarter ended October 31, 2013.
HIGHLIGHTS
Operational and Financial Results for the second quarters
ended October 31, 2013 and 2012:
- Revenue of $4.833 million ($5.016 million for 2012).
- Gross margin of $1.318 million ($1,594 million for 2012).
- Net Loss of $173,000 from continuing operations after income
tax which includes a deferred tax recovery of $57,000 ($1.171
million profit for 2012 which includes deferred tax recovery of
$697,000).
- During the quarter, the Corporation began trials with two major
oil and gas operators utilizing a new technology to recover oil,
water and solids from contaminated drill cuttings. The technology
uses thermal desorption to separate oil, water and solids which are
then recovered, reused or disposed of. Subsequent to the quarter
the trials were completed and the Corporation expects to establish
a new business together with the United Kingdom based developer of
the technology.
Company Developments:
- During the quarter, the Corporation completed the acquisition
of 1770245 Alberta Ltd. (which includes the assets of Tippin D
Oilfield Services Ltd. and 40 Creek Oilfield Services Ltd.) for a
purchase price of $1.8 million. The acquired company provides a
combination of vacuum, hydrovac and boiler truck services to the
completions and productions sectors of the oil and gas industry in
the Peace area of Northwestern Alberta. Subsequent to the
acquisition, the Corporation acquired additional equipment to
expand the services being offered in the area.
- Total capital expenditures during the quarter (excluding the
acquisition above) amounted to $1,523,000 for trucks and equipment
to meet the current demand for winter drilling work and to update
its fleet of vacuum and water trucks to tri-drive units.
- The Corporation's trial of the new thermal desorption
technology was concluded subsequent to the quarter. One trial was
carried out for a major oilsands operator in the Fort McMurray
region of Alberta treating bitumen and a second trial was carried
out for a major operator in Northeastern British Columbia treating
oil based drilling waste. The Corporation expects to establish a
new exclusive company with the United Kingdom based technology
developer to adapt the system to the Canadian climate and to
provide services to allow the recovery of oil, the recycling of
water and the separation of the solids. In addition to the
financial benefits of the oil recovery and water recycling, the
technology also dramatically reduces the amount of waste going to
landfill.
OUTLOOK AND
STRATEGY
While the first two months of the last quarter were slower than
usual in the drilling related services, activity has recently
picked up and the Corporation looks forward to a more active third
quarter.
The Corporation continues to expand its areas of operation and
also continues to expand and upgrade its fleet of trucks and its
equipment. The Corporation will continue to pursue new acquisitions
to both complement and diversify its areas of operation and the
services it can provide to the oil and gas exploration and
production industry.
OVERVIEW
The Corporation operates in the oilfield service industry in
Canada through two wholly owned subsidiaries - BearStone
Environmental Solutions Inc. and Porterco Oilfield Services Inc.
BearStone provides environmental services to the upstream oil and
gas industry and also operates a fleet of specialized vacuum,
hydrovac and water trucks. Porterco operates a fleet of trucks and
trailers for hauling oil contaminated drill cuttings as well as
providing equipment rental and custom fabrication services.
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.
New West Energy Services Inc.Gerry E. KerkhoffPresident &
Chief Executive Officer403.984.9798 or 1.888.977.2327
(BEAR)403.984.9799gkerkhoff@newwestenergyservices.comwww.newwestenergyservices.com
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