/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). 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.
Operational Update
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 AM on 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.
Other
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 Act of 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.