Estrella International Energy Services Ltd.
TSX VENTURE : EEN

Estrella International Energy Services Ltd.

August 26, 2011 09:40 ET

Estrella International Energy Services Ltd. Announces Filing of Second Quarter Financial Statements

BUENOS AIRES, ARGENTINA--(Marketwire - Aug. 26, 2011) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Estrella International Energy Services Ltd. ("Estrella" or the "Company") (TSX VENTURE:EEN) is pleased to announce that it has filed its interim unaudited financial statements for its second quarter ended June 30, 2011.

Second Quarter 2011 Highlights

  • The Company's quarterly revenue increased by 75% to a record of US$ 14,2 million as compared to the three month period ended June 30, 2010.

    • The largest driver for growth was the consolidation of revenues from STS of Colombia acquired late last year.

    • Excluding STS revenues, quarterly revenues increased by 25% as a result of new rigs being deployed in Peru and Bolivia.

  • Revenues were offset by general and administrative expenses of $2,857,000, depreciation of $3,748,000, interest expense of $1,979,000,, and oilfield services expenses of $9,659,000. The Company also recorded other income of $353,000.

  • As of June 30, 2011, the Company had strong liquidity with $20,173,000 of cash and cash equivalent.

  • During the second quarter, the Company completed a bought deal public offering (the "Offering") of 28,600,000 Common Shares. The Offering was made pursuant to a short form prospectus dated April 21, 2011. The Common Shares were issued at a price of CDN$0.70 per share for aggregate gross proceeds of CDN$20,020,000 to the Company.

  • Rig utilization levels were lower than the company`s historical averages, with a number of new rigs mobilizing onto new projects (351 and 552 in Peru, 1001 in Bolivia and STS06 and 07 in Colombia). All rigs have since entered service on their respective contracts.

  • Services revenues and consulting revenues were lower than anticipated during the period, impacted by slower activity levels in Argentina due to a region wide strike in the Southern part of the country. Activity has since returned to normal in the region. New consulting contracts have recently been signed with two operators in Argentina.

Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expects" and similar expressions. Forward-looking statements in this press release include, but are not limited to, statements with respect to the future business plans and services of Estrella.
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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Estrella International Energy Services Ltd.
    Christian Bauwens
    Chief Financial Officer
    +54 (11) 5217-5250

    Estrella International Energy Services Ltd.
    Warren Levy
    Chairman & Chief Executive Officer
    +54 (11) 5217-5250
    +54 (11) 5217-5280 (FAX)
    info@estrellasp.com
    www.estrellasp.com