/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.