TORONTO, ONTARIO--(Marketwired - Dec. 2, 2013) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
Estrella International Energy Services Ltd. ("Estrella" or the "Company") (TSX VENTURE:EEN) announces that it has filed its Interim Condensed Consolidated Financial Statements and the related Management's Discussion and Analysis ("MD&A") for the three and nine month period ended September 30, 2013. Copies of these documents can be found on the SEDAR website at www.sedar.com. In this press release all dollar amounts are in US$ '000 unless otherwise specified.
Financial Highlights for the Quarter Ended June 30, 2013
This is the first quarter where the Company's results included the consolidated operations of San Antonio Internacional Co. Inc., which was acquired by the Company on August 1, 2013. For the quarter ended September 30, 2013, the Company recorded its highest ever quarterly revenue of $38,648 ($16,145 in 2012). The Company's rig utilization rate for the quarter was 58% (40% in 2012). Utilization outside of Colombia continues to be very strong, with further improvements in Colombia being the main area of focus for the Company going forward.
The revenue for the quarter ended September 30, 2013 was offset by general and administrative expenses of $6,209 ($2,690 in 2012), depreciation of $7,170 ($2,650 in 2012), interest expense of $3,129 ($3,286 in 2012) and oilfield expenses of $32,066 ($15,201 in 2012). For the quarter ended September 30, 2013, the Company also recorded other (income) and expense of $591 ($-681 during 2012). The net loss was $8,254 ($8,096 in 2012). The Company recorded an EBITDA of $373 (-$1,746 in 2012).
Significant Events Subsequent to the Quarter End
On October 31, 2013, the Company filed articles of amendment ("Articles of Amendment") to consolidate its issued and outstanding Common Shares on a 100:1 basis. The Articles of Amendment also created a new series of preference shares designated as Series B Preference Shares and made administrative adjustments to the terms of the Series A Preference Shares to account for and reflect the consolidation of the Common Shares.
On November 1, 2013, the Company completed a previously announced private placement of Series B Preference Shares to Ringo Holding L.P. The Company issued 24,664,514 Series B Preference Shares to Ringo Holding at an issue price of CDN$5.00 per share, for aggregate gross proceeds to the Company of CDN$123,322,570. The proceeds of the private placement were used to repay all outstanding indebtedness owing by the Company to Ringo Holding. The Series B Preference Shares are convertible into post-consolidated Common Shares of the Company on a 1 for 1 basis.
Estrella is an oil and natural gas, geothermal and mining service company with operations throughout Latin and South America. It provides conventional drilling services; directional drilling services; tools and equipment sales and rentals; work-over and finishing services; and consulting and engineering services. The Corporation is headquartered in Buenos Aires, Argentina and has operating locations in five countries Latin and South America.
This press release may contain forward-looking statements which reflect management's expectations regarding future growth, results of operations, performance and business prospects of Estrella. These forward-looking statements may relate to, among other things, forecasts or expectations regarding business outlook for Estrella; commodity prices for oil and natural gas; oil and natural gas demand and production growth; debt service requirements for Estrella; improvements in operating procedures and technology; capital expenditures by Estrella and the oil and gas industry; the business strategies of Estella's customers; future global economic conditions; and future results of operations; expectations regarding the Corporation's ability to raise capital; realization of the anticipated benefits of acquisitions and dispositions, revenue growth, future acquisitions, generation of cash flow, and may also include other statements that are predictive in nature, or that depend upon or refer to future events or conditions, and can generally be identified by words such as "may", "will", "expects", "anticipates", "intends", "plans", "believes", "estimates", "guidance" or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These statements are not historical facts or guarantees of future performance, but instead represent management's current expectations, estimates and projections regarding future events.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Estrella. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and Estrella does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
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