Calmena Energy Services Inc.
TSX : CEZ

Calmena Energy Services Inc.

June 23, 2010 22:00 ET

Calmena Energy Services Inc. Update- Mexican Operations

CALGARY, ALBERTA--(Marketwire - June 23, 2010) - Calmena Energy Services Inc. (TSX:CEZ) ("Calmena" or the "Company") has received notice from its customer, a major international oilfield services company (the "Customer"), of the termination of its long-term agreement (the "Agreement") to provide the drilling services of six rigs to the Customer in Mexico. The date of release of the rigs is not yet determined, however it is expected that some of the rigs could be released from service in July 2010. Calmena expects to enter into a new short-term contract with the Customer to address the Customer's continuing drilling activity in Mexico.

This development follows notification from Petroleos Mexicanos ("Pemex"), the national oil company of Mexico, to the Customer of a reduction in the number of wells to be drilled under the Customer's main contracts to provide integrated services to Pemex in the Chicontepec and Burgos regions of Mexico. At this time Calmena is the only remaining third party service provider providing drilling services to the Customer under the Pemex main contracts. 

The six rigs are subject to a re-hire agreement with the Customer which provides that, for a 180 day period following the termination of the Agreement, Calmena has the first right to supply drilling services to the Customer under the Pemex main contracts in priority to all other third party providers of such services.

Calmena has been monitoring the situation in Mexico closely over the last several months and in conjunction with its broader Latin American regional strategy has been proactively exploring new opportunities. The Company believes Mexico continues to be an attractive long-term market and remains committed to establishing a leading presence there. The Company views the current marketplace dynamics in Mexico as an opportunity to capitalize on the evolving nature of the Mexican service industry landscape and remains encouraged by the longer term prospects.

Calmena is a diversified energy services company that provides well construction services to its customers operating in the Western Canadian sedimentary basin, the United States, Mexico as well as the Middle East and North Africa.

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly, and without limitation, this news release contains forward-looking statements and information concerning the timing of the release of drilling rigs from a long-term drilling services agreement, the Company entering into a short term drilling services contract and the viability of Mexico as a long term market for drilling services.

These forward looking statements and information are based on certain key expectations and assumptions made by the Company regarding the ability to negotiate a short term drilling services contract in Mexico; conditions in general economic and financial markets, regulatory developments and competition, particularly in Mexico and Latin America; exchange rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; and the availability and cost of labour and services, all of which are subject to change based on market conditions. Although the Company 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 because the Company can give no assurance that they will prove to be correct.

Since forward-looking statements and information address future events, by their nature, such statements and information involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks, including the failure to negotiate a short term drilling services contract in Mexico, fluctuations in the market for oil and gas and related products and services, particularly in Mexico and Latin America; failure of counter parties to perform on contracts; political and economic conditions, particularly in Mexico and Latin America; the demand for Calmena's services, competition and Calmena's ability to attract and retain customers and employees, particularly in Mexico and Latin America. The Company has provided the forward-looking statements herein in reliance on certain assumptions that they believe are reasonable at this time. These forward-looking statements may change for a number of reasons. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these items.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of the Company are included in reports on file with the applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless as required by applicable securities laws.

Contact Information

  • Calmena Energy Services Inc.
    John King
    President and Chief Executive Officer
    (403) 225-3879
    or
    Calmena Energy Services Inc.
    Peter Balkwill
    Vice President, Finance & CFO
    (403) 225-3879
    (403) 366-2066 (FAX)
    www.calmena.com