New West Energy Services Inc.
TSX VENTURE : NWE

New West Energy Services Inc.

September 27, 2013 15:11 ET

New West Energy Services Inc. Announces Its First Quarter Results

CALGARY, ALBERTA--(Marketwired - Sept. 27, 2013) - New West Energy Services Inc. (TSX VENTURE:NWE)(the "Corporation") is pleased to announce the financial results for the Corporation for its first quarter ended July 31, 2013.

HIGHLIGHTS

Operational and Financial Results for the first quarters ended July 31, 2013 and 2012:

  • Revenue of $3.57 million ($3.2 million for 2012).
  • Gross margin of $1 million ($1.01 million for 2012).
  • Net Income from continuing operations after income tax of $4,000 ($112,000 for 2012).

Company Developments:

  • A decrease in drilling activity during the quarter was caused in part by extremely wet conditions throughout Alberta during the spring break up period of May and June, exacerbated by major flooding in the province.
  • Capital expenditures during the quarter ended July 31, 2013 amounted to $394,000 for trucks and equipment.

Subsequent Events:

  • Subsequent to the quarter ended July 31, 2013, the Company entered into a share purchase agreement to acquire 1770245 Alberta Ltd. (which includes all the assets of Tippin D Oilfield Services Ltd. and 40 Creek Oilfield Services Ltd.) for a purchase price of $1.8 million. Tippin D and 40 Creek operate a combination of hydrovac and boiler trucks in the Beaverlodge area of Alberta and service the completions and production sectors of the oil and gas industry in both Northwest Alberta and Northeast British Columbia.
  • Subsequent to the quarter ended July 31, 2013, the Company began a trial phase for a period of 60 days on new technology to recover oil, water and solids from contaminated drill cuttings.

OVERVIEW

The Corporation is a publicly-traded company that is listed on the TSX Venture Exchange under the trading symbol "NWE.V". The Corporation's business activities are carried out through two wholly owned Calgary, Alberta subsidiaries - BearStone Environmental Solutions Inc. ("BearStone") and Porterco Oilfield Services Inc. ("Porterco").

BearStone is an environmental oilfield services company that provides environmental services and operates a fleet of specialized vacuum and water trucks to the upstream oil and gas industry throughout western Canada.

Porterco is a newly formed subsidiary resulting from the acquisition of the operating assets of Porterco Welding Ltd. which acquisition was completed on August 24, 2012. Porterco is based in Slave Lake, Alberta and operates a fleet of trucks and trailers for hauling contaminated drill cuttings. Other services offered by Porterco include equipment rental, custom fabrication and general oilfield hauling.

OUTLOOK AND STRATEGY

The Corporation continues to pursue new acquisitions (as mentioned above in subsequent events) which will compliment and diversify its existing services.

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

Contact Information

  • New West Energy Services Inc.
    Gerry E. Kerkhoff
    President & Chief Executive Officer
    403.984.9798 or 1.888.977.2327 (BEAR)
    403.984.9799 (FAX)
    gkerkhoff@bearstoneenviro.com