Seaway Energy Services Inc.

Seaway Energy Services Inc.

September 11, 2008 09:00 ET

Seaway Announces Appointment of New CFO and Provides Outlook

CALGARY, ALBERTA--(Marketwire - Sept. 11, 2008) - Seaway Energy Services Inc. ("Seaway" or the "Company") (TSX VENTURE:SEW) is pleased to announce the appointment of Mr. Michal J. Holub, CA, as its Chief Financial Officer. Mr. Holub joins Seaway's executive management team with an extensive background in financial reporting, accounting and taxation.

Mr. Holub has held senior financial positions with both public and private companies involved in the oil and gas exploration and production and accounting sectors. Most recently, as the Controller with an oil and gas junior producer, he was instrumental in developing accounting policies and internal control compliance and played a key role in the successful consummation of a business combination with a third party. Mr. Holub obtained a Bachelor of Commerce degree from the University of Calgary and holds a Chartered Accountant designation.

Mr. Holub replaces Ms. Patricia Taguchi who had resigned her position as Chief Financial Officer of the Company to pursue other interests. Seaway would like to thank Ms. Taguchi for her significant contributions to the Company over the past two years.


The Company recently filed its interim financial statements and accompanying management's discussion and analysis for the three month period ended June 30, 2008. Please note that the Company's year end had been changed to September 30, considered to be more appropriate to the operating cycle of the business.

Copies of these documents may be obtained electronically from the SEDAR system at or on the Company's website

Results of Operations
Statement of operations ($ rounded)

Three months ended Nine months ended
June 30 June 30
2008 2007 2008 2007
Gross revenue 1,020,700 1,099,600 4,965,800 4,558,300

Operating expenses 739,200 710,100 3,407,000 3,134,500

Gross profit 281,500 389,500 1,558,800 1,423,800

Admin. expenses 296,700 294,300 876,300 761,400

Net income (loss) (138,500) 20,400 314,200 183,600

Balance sheet
($ rounded) June 30, September 30,
2008 2007

Working capital 72,800 239,000

Total assets 2,761,800 2,392,200

Gross revenue from environmental consulting services increased 8.9% from $4,558,300 to $4,965,800 for the nine month period ending June 30, 2008. The increase is directly related to higher activity levels associated with increased oil and natural gas prices as compared to the corresponding period in 2007. Gross revenues decreased 7.1% from $1,099,600 to $1,020,700 for the third quarter of 2008 compared to the corresponding 2007 quarter and decreased about 47% from $1,930,300 for the second quarter of 2008. The quarter ended June 30 is historically the Company's weakest due to the impact of road bans and adverse spring weather on the movement of heavy drilling equipment.

Seaway remains cautiously optimistic for increased industry levels in 2008. Our clients have indicated steady or increased capital programs to year-end but variability in commodity prices, particularly a weakening in gas price, could potentially result in budget reductions. We believe the period of lowest demand for our services has passed and we are forecasting gross revenue of $7.0 MM for the twelve months ended September 30, 2008, approximately a 4% increase in revenue from $6.7MM for the comparable period in 2007. Given, however the cyclical nature of the business environment we will continue to operate in a prudent manner and be selective in pursuing growth opportunities.

An agreement had been reached in mid-2007 with a Seaway director and former shareholder of Seaway Project Management (1998) Ltd. on modified payment terms for amounts still owed and associated with the qualifying transaction of the Company's predecessor, Dolce Financial Corp. A significant principal payment in the amount of $600,000 was made subsequent to the end of the quarter. The Company anticipates being able to meet its obligation of the payments on the balance owing by the end of March 2009.

Seaway is a Calgary-based corporation providing environmental consulting services to the oil and gas industry. These services include managing the construction of oil and gas leases and access roads, cleanup of leases and roads following drilling activity and reclamation of leases following drilling and production.

Seaway is listed on the TSX Venture Exchange under the symbol "SEW".

Certain statements contained in this document are "forward-looking statements". The projections, estimates and beliefs contained in such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results or events to differ materially from those anticipated in any forward-looking statements. Seaway believes the expectations reflected in those forward-looking statements are reasonable; however Seaway cannot provide any assurance that these expectations will prove to be correct.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Seaway Energy Services Inc.
    Jerry Budziak
    President and CEO
    (403) 235-4486
    (403) 266-1181 (FAX)
    Seaway Energy Services Inc.
    Suite 504 200 LaCaille Place SW
    Calgary, Alberta, Canada
    T2P 5E2