/THIS PRESS RELEASE IS NOT FOR DISSEMINATION IN UNITED STATES OR TO ANY UNITED STATES NEWS SERVICES./
CALGARY, April 18, 2013 /CNW/ – IROC Energy Services Corp. (“IROC” or the “Corporation”) (TSXV:ISC.V). In anticipation of the closing of the previously announced transaction between IROC and Western Energy Services Corp. (the “Western Transaction”), the Corporation is pleased to provide an update on IROC’s first quarter activity as well as an update on the status of the Western Transaction.
During the first quarter of 2013, IROC completed the construction of 3 service rigs allowing IROC to exit the quarter with a service rig fleet to 53 rigs, with a further 2 rigs expected to be completed during the second quarter of 2013. On average, IROC operated 50.2 rigs during the quarter versus 42.5 rigs during the first quarter of 2012. As a result of IROC’s increased rig fleet, combined with continued strong customer demand, IROC achieved 33,280 service rig operating hours (74% fleet utilization) during the quarter, an increase of 16% over the 28,601 service rig hours (74% fleet utilization) generated in the first quarter of 2012.
The increase in rig activity during the quarter allowed IROC to generate record quarterly revenue of $34.7 million in the quarter surpassing the $32.5 million generated in the first quarter of 2012.
Management is pleased with the strong operational results generated in the quarter in an otherwise subdued industry environment. Cold weather into the end of March delayed the onset of the seasonal spring breakup, which benefited IROC’s service rig activity levels during the first quarter.
Western Transaction Update
The Special Meeting of Shareholders relating to the Western transaction will be held at 10:00 AMon April 19, 2013 in the Viking Room of the Calgary Petroleum Club, 319 – 5th Avenue S.W, Calgary, AB. Management anticipates that the Western Transaction will close effective April 22, 2013 following the receipt of shareholder approval and the receipt of the final court order.
Cautionary Statement Regarding Forward Looking Information and Statements
Certain information contained in this news release, including information related to the Corporation’s level of service rig utilization, expected rig completions in the second quarter, and the anticipated closing of the Western Transaction and information or statements that contain words such as “forecasts”, “could”, “should”, “can”, “anticipate”, “expect”, “believe”, “will”, “may”, “likely”, “estimate”, “predict”, “potential”, “continue”, “maintain”, “retain”, “grow”, and similar expressions and statements relating to matters that are not historical facts, and / or are under columns labelled “guidance”, constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. This information or these statements are based on certain assumptions and analysis made by the Corporation in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances, and the statements contained in this news release speak only as of the date hereof.
Whether actual results, performance or achievements will conform to the Corporation’s expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Corporation’s expectations. Such risks and uncertainties include, but are not limited to: fluctuations in the price and demand for oil and natural gas; fluctuations in the level of oil and natural gas exploration and development actives; fluctuations in the demand for well servicing and ancillary oilfield services; capital market liquidity available to fund oil and gas exploration and development programs; the effects of seasonal and weather conditions on operations and facilities; the highly competitive operating environment inherent in well servicing and ancillary oilfield services; general economic, market or business conditions; changes in laws or regulations; the availability of qualified operational and management personnel; currency exchange and interest rate fluctuations; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; changes in income tax laws or changes in tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; risks associated with government regulations and environmental health and safety matters; differences between Canadian GAPP and IFRS; and other unforeseen conditions which could impact the use of equipment and services supplied by IROC.
Consequently, all of the forward-looking information and statements made in this news release are qualified by this cautionary statement and there can be no assurance that the actual results will be realized. Except as may be required by law, the Corporation assumes no obligation to update publicly any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.
This press release is not for dissemination in United States or to any United States news services. The Common Shares of IROC have not and will not be registered on the United States Securities Actof 1933, as amended (the “United States Securities Act“) or any state securities laws and are not offered or sold in the United States or to any US person except in certain transactions exempt from the registration requirements of the United States Securities Act and applicable state securities laws.
Neither 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.
SOURCE: IROC Energy Services Corp.
IROC Energy Services Corp.
Mr. Thomas M. Alford, President and CEO
Telephone: (403) 263-1110