Estrella International Energy Services Ltd.
TSX VENTURE : EEN

Estrella International Energy Services Ltd.

April 12, 2011 08:37 ET

Estrella International Energy Services Ltd. Announces an Operational Update and the Award of New Contracts

BUENOS AIRES, ARGENTINA--(Marketwire - April 12, 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 the award of a number of new contracts, and the extension of a key contract in Colombia.

Operations Detail

GeoGlobal Energy LLC / (A Major Geothermal Operator in Chile) has awarded Estrella contracts for their upcoming 2011-2012 drilling campaign. The contracts include the provision of directional drilling services, drilling tools and the provision and running of liner hangers. Also on the same project, Estrella is mobilizing Rig 1201 to the operating area in central Chile for an expected project start during the second quarter. The award of these projects maintains Estrellas leading position in the Geothermal sector in South America.

A Canadian Junior operating in Argentina has selected Estrella to provide engineering, planning and project supervision services on their upcoming drilling campaign. The project is expected to consist of drilling 4-6 wells in the coming months.

In Colombia, Estrella's 49% owned subsidiary Zigma S.A.S. has been awarded a contract to extend the services of drilling rig PL1 for up to an additional 15 wells after its current two well program is completed. This contract should see the rig operating continuously through the remainder of the calendar year.

"The expansion of our directional and consulting businesses are core objectives for the company in 2011. We are pleased to see that that our customers have the confidence to award contracts to Estrella in such challenging and exciting projects. We are also seeing strong market demand across the region, and notably in the southern cone, for Estrella's high quality drilling and workover services." said Warren Levy, President and Chief Executive Officer of the Company.

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 and final Exchange approval of the Merger.

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
    +54 (11) 5217-5280

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