Seaway Energy Services Inc.

Seaway Energy Services Inc.

August 30, 2007 19:09 ET

Seaway Announces Release of Interim Financial Statements

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2007) -


Seaway Energy Services Inc. ("Seaway" or the "Company") (TSX VENTURE:SEW) announces that the Company has filed its interim financial statements and accompanying management's discussion and analysis for the three month period ended June 30, 2007.

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


Statement of operations ($ rounded)

Three months ended Six months ended
June 30, 2007 June 30, 2007

Gross revenue 1,099,600 2,575,600
Gross profit 389,500 836,700
Administrative expenses 294,300 516,400
Salaries and benefits (included in
administrative expenses) 186,200 354,000
Net income after taxes 41,200 174,700
Net income per share $0.002 $0.007

Balance sheet ($ rounded)
June 30, 2007 December 31, 2006

Working capital 433,100 229,500
Total assets 2,490,400 5,187,200

Gross revenue for the second quarter of 2007 compared to the first quarter of 2007 decreased by 25% from $1,447,000 to $1,099,600. While 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, the prolonged weakness in industry activity has negatively impacted revenue as well. Seaway derives the bulk of its revenues from drilling location construction and clean-up and wellsite reclamations. Weak natural gas prices coupled with lower production margins have resulted in fewer wells being drilled and reduced reclamation activity. Seaway is experiencing an improvement in activity levels in the third quarter of 2007 but it will not be of sufficient magnitude for gross revenue to approach 2006 performance. Seaway is forecasting gross revenue of $6.0 MM for the twelve months ended September 30, 2007, a 36% drop in revenue from $9.4 MM for the comparable period in 2006.

Seaway's wholly-owned subsidiary, Seaway Project Management (1998) Ltd. has operated successfully through similar industry downturns in the past. The Company is drawing on that expertise to operate in a prudent manner and position itself for when industry activity levels substantially improve. During the current industry downturn, Seaway continues to pursue new clients to broaden its client and revenue generation base. To provide the Company with additional financial flexibility, the Company has secured a $600,000 operating demand line of credit from a Canadian chartered bank. Drawings bear interest at the Bank's prime rate of interest plus 0.5%. Agreement has also been reached with a Seaway director and former shareholder of Seaway Project Management (1998) Ltd. on modified payment terms for amounts still owing, associated with the qualifying transaction of the Company's predecessor, Dolce Financial Corp. closed in October 2006. The modification extends final payment on amounts owed to February 1, 2009 from October 4, 2008.

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