CALGARY, ALBERTA--(Marketwire - Jan. 3, 2013) - Wenzel Downhole Tools Ltd. (TSX:WZL) (the "Company") has agreed with Dreco Energy Services ULC ("Dreco") and Vector Oil Tools ULC ("Vector") that none of the parties will appeal the arbitration award (the "Award") announced in the Company's press release of December 4, 2012.
The Company has also reached agreement with Dreco and Vector on the total amount (including interest and legal costs) associated with the Award to be paid by the Company: 18,475,683 CDN$.
Legal action with Dreco and Vector has been ongoing for approximately 10 years and has required significant resources over that period of time - both financial and personnel. The Company is looking forward to the benefits of exclusive focus on its core business of providing to its customers downhole drilling tools of the highest quality combined with industry leading service.
About Wenzel Downhole Tools Ltd.
The Company is a designer, manufacturer, seller and renter of drilling tools used in oil and gas exploration, that operates in Canada, the United States and internationally; its shares trade on the Toronto Stock Exchange under the symbol "WZL".
The Company's Canadian sales, manufacturing and servicing facilities are located in Edmonton, Alberta and its US sales and servicing facilities are located in Conroe, Texas; Morgantown, West Virginia; Casper, Wyoming and Oklahoma City, Oklahoma. It also has a sales and service facility in Celle, Germany.
The main corporate office is located in Calgary, Alberta.
Forward Looking Statements
Certain statements contained in this press release constitute "forward-looking statements". These statements are based on current beliefs and assumptions of management, however are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from the forward-looking statements in this press release. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. For additional information with respect to certain of these beliefs, assumptions, risks and uncertainties, please refer to The Company's Annual Information Form for fiscal 2011 available on SEDAR at http://www.sedar.com.
Forward-looking statements are based on estimates and opinions of management of the Company at the time the statements are presented. The Company may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but the Company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY AND ACCURACY OF THIS NEWS RELEASE.