Estrella International Energy Services Ltd.
TSX VENTURE : EEN

Estrella International Energy Services Ltd.

September 21, 2010 17:52 ET

Estrella International Energy Services Ltd.: Operational Update

CALGARY, ALBERTA--(Marketwire - Sept. 21, 2010) -

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

Estrella International Energy Services Ltd. (TSX VENTURE:EEN) ("Estrella" or the "Company") announces its operational update for September 2010, the extension of existing contracts and an update on the status of proposed acquisitions.

Operational Highlights

Operational highlights for September 2010 include:

  • Existing term contracts for Workover Rig 103S with PlusPetrol S.A. were extended for an additional one year period on the same terms and conditions as the existing contracts.

  • Existing term contracts for Workover Rigs 101S and 102S with Occidental Petroleum Corporation ("Oxy") were extended for an additional one year period at improved terms. The customer has also requested the inclusion of an option to extend these contracts for an additional one year period.

  • The Company is in the final stage of contracting its Workover Rig 351 and its drilling Rig 552 in Peru.

Acquisition Update

Estrella would also like to advise that it is in the final stages of its due diligence investigations for two potential acquisition targets selected by management and initially announced on August 11, 2010. While the Company has not made a final decision on whether to proceed with either transaction, management is encouraged with the progress made to date.

In the event that the Company elects to proceed, it expects that part of the purchase price will be satisfied by seller financing and/or equity of Estrella. The balance of the purchase price is expected to be funded with debt financing.

The final decision on whether to proceed with either transaction is still subject to obtaining appropriate financing terms for the funding of the transaction as well as Board approval. In the event that the Company elects to proceed with one or more of the acquisitions, it hopes to close such transactions prior to December 31, 2010.

Warren Levy, Chairman and CEO of Estrella commented: "Expanding our footprint in Colombia is a key objective of Estrella. We are pleased by the quality and commitment of the companies that we have selected as acquisition targets and feel that individually or collectively will act as a great platform from which to grow our business."

Statements in this press release may contain forward-looking information, including statements regarding future financing and acquisition opportunities and receiving final Exchange approval. 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.
    Warren Levy
    Chairman & Chief Executive Officer
    +54 (11) 5217-5250
    or
    Estrella International Energy Services Ltd.
    Christian Bauwens
    Chief Financial Officer
    +54 (11) 5217-5250
    +54 (11) 5217-5280 (FAX)
    info@estrellasp.com
    www.estrellasp.com