Estrella International Energy Services Ltd.
TSX VENTURE : EEN

Estrella International Energy Services Ltd.

November 01, 2011 08:23 ET

Estrella International Energy Services Ltd.: Operational Update and Appointment to the Board of Directors

TORONTO, ONTARIO--(Marketwire - Nov. 1, 2011) -

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Estrella International Energy Services Ltd. ("Estrella" or "Company") (TSX VENTURE:EEN) today announces that it has appointed Mr. Philip MacDonnell as a director and Chair of the Audit Committee for the Company. For the past twenty years, Mr. MacDonnell has been a partner of Hawk Capital Corporation, a private partnership which has provided financing and financial advice to a variety of companies. He has also sat on the boards of numerable public companies and currently serves on the Board of Directors of New Dawn Mining Corp., a Zimbabwe focused junior mining company listed on the TSX. He is also chairman of the audit and governance committee of New Dawn.

Chairman, Warren Levy commented, "The Board of Directors of Estrella is pleased to welcome Phil to the Board. Phil is well-known and highly respected in the natural resource industry. We believe Phil's experience will be invaluable to Estrella as it continues in its next phase of growth."

Mr. MacDonnell will be replacing Mr. John Zaozirny who has resigned from his position as a director and Chair of the Audit Committee of the Company. The resignations are effective immediately.

Chairman, Warren Levy expressed his gratitude to Mr. Zaozirny stating, "On behalf of Estrella, the other members of the Board and the employees, I would like to thank John for his service to the Company. His expertise and dedication has benefitted the Company in countless ways. We look forward to working with John in the future and wish him the utmost success in his future endeavours."

Operational Update

Rig 551 entered operations for Estrella in Dec 2007 as the Company's first rig, and the first AC fully automated drilling rig to enter Argentina. The rig successfully drilled 174 wells and worked continuously for over 3 years and 8 months, first for PetroAndina and later for PlusPetrol (who purchased PetroAndina's acerage in Argentina) in the same area in the Neuquén basin of Argentina. The rig is now completing a planned maintenance program and will be mobilized onto a new contract in the coming two weeks with an operator in Argentina. The rig will be working on a project where Estrella has also been providing the project management and drilling engineering services over the past four months in lead up to this drilling program, with additional work planned in 2012 both on this drilling project and a potential extended reach drilling program which is currently in the final evaluation stages.

STS now has all of rigs 2,3,4,5,6 and 7 operating on term contracts in Colombia. Collectively Estrella now has twelve rigs in Colombia operating on term contracts, with two rigs being upgraded and one being marketed. The Company is currently evaluating offers to sell off two small 250 HP pulling units as noncore assets.

Additionally, the Company is currently negotiating extension to five term contracts for rigs (two drilling and three work-over), three of which are under negotiation for multi year extensions.

On the evening of October 27th 2011, there was a serious mechanical incident on our drilling rig Estrella 1201 operating in Chile. A team of experts have been mobilized to the site to investigate the root cause of the failure and undertake repairs.

Chairman, Warren Levy commented, "We continue to see robust demand for drilling and work-over activities around Latin America. Certain markets continue to positively surprise with activity in Bolivia, Colombia and Chilean geothermal and, in particular, the shale gas potential in Argentina fuelling heavy interest by operators for more sophisticated rigs and related services."

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.

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.

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