Central Alberta Well Services Corp.
TSX VENTURE : CWC.A

Central Alberta Well Services Corp.

March 16, 2009 21:00 ET

Central Alberta Well Services Announces Revisions to Financial Statements

CALGARY, ALBERTA--(Marketwire - March 16, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Central Alberta Well Services ("CWC" or the "Company") (TSX VENTURE:CWC.A) advises that it will be restating its financial statements for the three month periods ending March 31, 2007, June 30, 2007, September 30, 2007 and the annual results ending December 31, 2007. The Company will also restate the three month periods ending March 31, 2008, June 30, 2008 and September 30, 2008. The nature of this restatement is a change in the accounting for warrants issued to Brookfield Bridge Lending Fund Inc. in January, 2007 during the refinancing of the long-term debt facility with the Company. These warrants were issued with an exercise price of $0.825 per warrant and contain a cash settlement provision or "put" in the amount of $0.10 per unexercised warrant at the end of the term which is January 25, 2010. This restatement is strictly a non-cash item and has no effect on the cash flow of the Company.

The cash settlement provision or "put" included in the warrant, requires classification as a financial liability under Section 3855 "Financial Instruments - Recognition and Measurement" of the CICA Handbook. The fair value of the warrants has been recalculated utilizing an approximation of the bi-nomial lattice model and the above mentioned prior periods will be restated to reflect this change. The effect of the restatement for 2007 is outlined below:



2007 Previously
Reported Adjustments 2007 Restated
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Interest expense $ 5,374,958 $ (1,281,186) $ 4,093,772
Deficit and net loss $ (5,341,512) $ 1,281,186 $ (4,060,326)
Current liabilities $ 7,095,463 $ 1,342,783 $ 8,438,246
Long-term debt $ 29,453,660 $ (211,848) $ 29,241,812
Equity $ 81,916,194 $ (1,130,935) $ 80,785,259
EPS $ (0.24) $ 0.06 $ (0.18)
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The restatement of the 2008 financial statements is outlined in the
following table:


Three months ended March 31, 2008
Previously reported Adjustments Restated
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Interest expense $ 1,300,828 $ 22,527 $ 1,323,355
Net Loss $ 1,770,859 $ (22,527) $ 1,748,332
Deficit $ (3,570,653) $ 1,258,659 $ (2,311,994)
Current liabilities $ 7,347,201 $ 1,343,991 $ 8,691,192
Long-term debt $ 49,362,889 $ (190,529) $ 49,172,360
Equity $ 83,843,830 $ (1,153,462) $ 82,690,368
EPS $ 0.06 $ (0.00) $ 0.06



Six months ended June 30, 2008
Previously reported Adjustments Restated
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Interest expense $ 2,601,387 $ (109,334) $ 2,492,053
Net Loss $ (1,130,217) $ 109,334 $ (1,020,883)
Deficit $ (6,471,729) $ 1,390,520 $ (5,081,209)
Current liabilities $ 7,197,787 $ 1,190,037 $ 8,387,824
Long-term debt $ 45,783,497 $ (168,436) $ 45,615,061
Equity $ 81,138,385 $ (1,021,601) $ 80,116,784
EPS $ (0.04) $ 0.00 $ (0.04)



Nine months ended September 30, 2008
Previously reported Adjustments Restated
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Interest expense $ 3,874,713 $ (14,853) $ 3,859,860
Net Loss $ (134,329) $ 14,853 $ (119,476)
Deficit $ (5,475,841) $ 1,296,039 $ (4,179,802)
Current liabilities $ 10,239,494 $ 1,261,622 $ 11,501,116
Long-term debt $ 52,215,477 $ (145,542) $ 52,069,935
Equity $ 81,893,427 $ (1,116,082) $ 80,777,345
EPS $ 0.00 $ (0.01) $ (0.01)


The Company is not in default under the terms of its credit facilities with its lenders.

About Central Alberta Well Services

Central Alberta Well Services has its corporate office in Calgary, Alberta, with its operational head office in Red Deer, Alberta, and additional operating centres in Provost, Brooks and Grande Prairie, Alberta. The Company provides oilfield services, including well servicing, coil tubing, snubbing, nitrogen, well testing and oilfield equipment rentals to oil and gas companies operating in the Western Canadian Sedimentary Basin.

READER ADVISORY

Certain statements contained in this press release, including statements which may contain such words as "could", "should", "believe", "expect", "will", and similar expressions and statements relating to matters that are not historical facts are forward-looking statements, including, but not limited to, statements as to: future capital expenditures, including the amount and nature thereof; business strategy; expansion and growth of the Company's business and operations; and other matters. Management has made certain assumptions and analyses which reflect their experiences and knowledge in the industry. These assumptions and analyses are believed to be accurate and truthful at the time, but the Company cannot assure readers that actual results will be consistent with these forward-looking statements. However, whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to known and unknown risks and uncertainties which could cause actual results to differ materially from the Company's expectations. All forward-looking statements made in the press release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected outcomes to, or effects on, the Company or its business operations. The Company does not intend and does not assume any obligation to update these forward-looking statements. Any forward-looking statements made previously may be inaccurate now.

Class A Common Shares (Trading): 20,233,830

Class B Common Shares (Non-Trading): 6,953,531

The TSXV has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Central Alberta Well Services Corp.
    Darryl E. Wilson
    President & Chief Executive Officer
    (403) 264-2177
    Email: darrylwilson@cawsc.com
    or
    Central Alberta Well Services Corp.
    Darcy A. Campbell, CMA
    Vice-President, Finance and Chief Financial Officer
    (403) 264-2177
    Email: darcycampbell@cawsc.com
    or
    Central Alberta Well Services Corp.
    755, 255 - 5 Avenue SW
    Calgary, Alberta T2P 3G6