Category

2016

New West Energy Services Inc. Announces Its Second Quarter Results

By | 2016

CALGARY, ALBERTA–(Marketwired – Dec. 22, 2016) – New West Energy Services Inc. (TSX VENTURE:NWE) (the “Corporation”) is pleased to announce the financial results for the Corporation for its second quarter ended October 31, 2016.

HIGHLIGHTS

Operational and Financial Results for the second quarters ended October 31, 2016 and 2015:

  • Revenue of $1.59 million (2015 – $2.61 million).
  • Gross margin of $283K (2015 – $666K).
  • Net loss from operations of $786K (2015 – net loss of $549K).
  • Loss per share (basic and diluted) of $0.007 (2015 – $0.006).
  • EBITDA was a negative $414K (2015 was a negative $159K). This calculation is a non-IFRS measure.
  • Current liabilities were $2.98 million (2015 – $3.39 million) and long term liabilities were $1.84 million (2015 – $2.47 million).
  • The Corporation is continuing to actively pursue an acquisition or merger which will strengthen the Corporation and position it for growth as activity levels increase.
  • Subsequent to the quarter end, activity levels have increased and Management expects a strong winter drilling season.

Company Developments:

During the quarter, the Corporation continued to lower costs and has received an unsecured loan from a director of the Corporation in the amount of $265,000 payable on demand at an interest rate of 9%. For the six months ended October 31, 2016, a total of $565,000 has been received by the Corporation from the same director on the same terms. All these loans have been used for general working capital. Subsequent to the quarter end, an additional $500,000 of unsecured loans from the same director have been received for the purpose of general working capital. The Corporation does not anticipate the director will seek repayment of any of the loans in a manner that would prejudice the Corporation’s financial position.

The Corporation engaged PwC Corporate Finance, which specializes in providing M&A related advisory services, as its exclusive advisor to assist with target identification, valuation analysis, structuring and negotiations. The Corporation is actively pursuing strategic acquisition opportunities.

OUTLOOK AND STRATEGY

The Corporation has a solid client base and has been successful in leveraging this client base to include the new diversified services being offered in the production and maintenance sectors of the oil and gas industry. Activity levels have increased substantially since the end of the last quarter and management expects a material increase in utilization of its equipment over the current winter season.

OVERVIEW

Through its subsidiaries, the Corporation operates a fleet of straight, combo and hydro vac trucks as well as end dumps, water and tank trucks with bulk transport trailers and environmental services. The Corporation operates throughout Western Canada in the drilling, completions and production sectors of the oil and gas industry with its main service centres located in Beaverlodge and Medicine Hat with its head office in Calgary, Alberta.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements and Information

Except for the statements of historical fact contained herein, certain information presented herein constitutes forward-looking statements and/or information. The forward-looking statements and information contained in this press release are solely opinions and forecasts which are uncertain and subject to risks. Forward-looking statements and information include, but are not limited to, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such forward-looking statements and information are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties. Accordingly, readers are cautioned that the assumption used in the preparation of the forward-looking statements, although considered reasonable at the time of preparation may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements and information.

The forward-looking statements and information contained in this press release are made as of the date of this press release. Except as required by law, the Corporation disclaims any intention and assumes no obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. Additionally, the Corporation undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters disclosed in this press release.

New West Energy Services Inc.
Gerry E. Kerkhoff
President & Chief Executive Officer
403.984.9799
403.984.9798 or 1.888.977.2327 (BEAR)
gkerkhoff@newwestenergyservices.com
www.newwestenergyservices.com

New West Energy Services Inc. Announces Its First Quarter Results

By | 2016

CALGARY, ALBERTA–(Marketwired – Sept. 29, 2016) – New West Energy Services Inc. (TSX VENTURE:NWE) (the “Corporation”) is pleased to announce the financial results for the Corporation for its first quarter ended July 31, 2016.

HIGHLIGHTS

Operational and Financial Results for the three months ended July 31, 2016 and 2015:

  • Revenue of $1.39 million (2015 – $2.97 million).
  • Gross margin of $274K (2015 – $721K).
  • Net loss from operations of $782K (2015 – net loss of $496K).
  • Loss per share (basic and diluted) of $0.008 (2015 – $0.005).
  • EBITDA was a negative $410K (2015 was a negative $87K). This calculation is a non-IFRS measure.
  • Current liabilities were $2.36 million (2015 – $2.13 million) and long term liabilities were $1.97 million (2015 – $2.12 million).
  • The Corporation continues to reduce operational and overhead costs during the quarter in response to the prolonged slowdown in the oil and gas industry due to low oil and gas prices.
  • The Corporation is continuing to actively pursue an acquisition or merger which will strengthen the Corporation and position it for growth when oil and gas activity levels increase.

Company Developments:

Due to the reduction in Western Canadian drilling activity since mid 2014, when oil prices started to decline, the Corporation has initiated and continues to take steps to reduce costs to prepare for a prolonged period of lower activity. Direct and overhead costs have been reduced significantly and continue to be monitored on a monthly basis to stay in line with customer requirements and overall activity levels. Management will continue to review the financial position of the Corporation and will consider various options to support its current and future cash flow requirements.

During the quarter, the Corporation completed the final phase of a non-brokered private placement of 666,667 common shares of the Corporation issued at a price of $0.03 per share for aggregate gross proceeds of $20,000. Also during the quarter, the Corporation has received an unsecured loan from a director of the Corporation in the amount of $300,000 payable on demand at an interest rate of 9%. These proceeds and the loan have been used to repay certain bank indebtedness and general working capital. Subsequent to the quarter end, an additional $200,000 of unsecured loans from the same director have been received for the purposes of general working capital. The Corporation does not anticipate the director will seek repayment of any of the loans in a manner that would prejudice the Corporation’s financial position.

The Corporation engaged PwC Corporate Finance, which specializes in providing M&A related advisory services, as its exclusive advisor to assist with target identification, valuation analysis, structuring and negotiations. Management believes that now is the time to pursue a strategic acquisition or merger which would add shareholder value and position the Corporation for future growth and diversification when activity levels increase again.

OUTLOOK AND STRATEGY

The Corporation has a solid client base and has been successful in leveraging this client base to include the new diversified services being offered in the production and maintenance sectors of the oil and gas industry. Management will continue to focus on diversification as well as cost reductions through the downturn in the industry and is confident that overall margins will increase in the long term as operating efficiencies are recognized.

OVERVIEW

Through its subsidiaries, the Corporation operates a fleet of straight, combo and hydro vac trucks as well as end dumps, water and tank trucks with bulk transport trailers and environmental services. The Corporation operates throughout Western Canada in the drilling, completions and production sectors of the oil and gas industry with its main service centres located in Beaverlodge and Medicine Hat with its head office in Calgary, Alberta.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

New West Energy Services Inc.
Gerry E. Kerkhoff
President & Chief Executive Officer
403.984.9799
403.984.9798 or 1.888.977.2327 (BEAR)
gkerkhoff@newwestenergyservices.com
www.newwestenergyservices.com

New West Energy Services Inc. Announces Its Fourth Quarter and Year End Results

By | 2016

CALGARY, ALBERTA–(Marketwired – Aug. 29, 2016) – New West Energy Services Inc. (TSX VENTURE:NWE) (the “Corporation”) is pleased to announce the financial results for the Corporation for its fourth quarter and year ended April 30, 2016.

HIGHLIGHTS

Operational and Financial Results for the fiscal years ended April 30, 2016 and 2015:

  • Revenue of $12.09 million (2015 – $21.83 million).
  • Gross margin of $3.19 million (2015 – $4.62 million).
  • Net loss from operations of $1.77 million (2015 – net loss of $3.77 million). Included in the net loss for 2015 was a non-cash item of a loss on goodwill impairment of $1.52 million.
  • Loss per share (basic and diluted) $0.018 (2015 – $0.039).
  • EBITDA was a negative $189,000 (2015 was a negative $31,000). This calculation is a non-IFRS measure.
  • Current liabilities were $2.13 million (2015 – $3.56 million) and long term liabilities were $2.12 million (2015 – $3.09 million).
  • The Corporation continued to reduce debt and operational and overhead costs during the year in response to the prolonged slowdown in the oil and gas industry due to low oil and gas prices.

Financial Results for the fourth quarters ended April 30, 2016 and 2015:

  • Revenue decreased 11% to $2.76 million (2015 – $3.11 million).
  • Gross margin increased to $757K (2015 – $516K).
  • Net loss from operations of $570K before income tax (2015 – net loss of $1 million).
  • A non-cash loss on goodwill impairment of $nil (2015 – $874K).

Company Developments:

Due to the reduction in Western Canadian drilling activity since November 2014, when oil prices started to decline, the Corporation has initiated and continues to take steps to reduce costs to prepare for a prolonged period of lower activity. Direct and overhead costs have been reduced significantly and continue to be monitored on a monthly basis to stay in line with customer requirements and overall activity levels. Management will continue to review the financial position of the Corporation and will consider various options to support its current and future cash flow requirements.

During the year, the Corporation completed a non-brokered private placement of 20,777,112 common shares issued at a price of $0.03 per share for aggregate gross proceeds of $623,313. Subsequent to year end, an additional 666,667 common shares were issued for aggregate gross proceeds of $20,000. The total proceeds of $643,313 will be used to repay certain bank indebtedness and general working capital.

The Corporation engaged PwC Corporate Finance, which specializes in providing M&A related advisory services, as its exclusive advisor to assist with target identification, valuation analysis, structuring and negotiations. Management believes that now is the time to pursue a strategic acquisition or merger which would add shareholder value and position the Corporation for future growth and diversification when activity levels increase again.

OUTLOOK AND STRATEGY

The Corporation has a solid client base and has been successful in leveraging this client base to include the new diversified services being offered in the production and maintenance sectors of the oil and gas industry. Management will continue to focus on diversification as well as cost reductions through the downturn in the industry and is confident that overall margins will increase in the long term as operating efficiencies are recognized.

OVERVIEW

Through its subsidiaries, the Corporation operates a fleet of straight, combo and hydro vac trucks as well as end dumps, water and tank trucks with bulk transport trailers and environmental services. The Corporation operates throughout Western Canada in the drilling, completions and production sectors of the oil and gas industry with its main service centres located in Beaverlodge and Medicine Hat with its head office in Calgary, Alberta.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

New West Energy Services Inc.
Gerry E. Kerkhoff
President & Chief Executive Officer
403.984.9799
403.984.9798 or 1.888.977.2327 (BEAR)
gkerkhoff@newwestenergyservices.com
www.newwestenergyservices.com

New West Energy Services Inc. Announces Closing of Second Tranche of Private Placement Financing

By | 2016

CALGARY, ALBERTA–(Marketwired – April 27, 2016) – NEW WEST ENERGY SERVICES INC. (TSX VENTURE:NWE) today announced the closing of a second tranche of its previously announced non-brokered private placement financing through the issuance of 666,667 common shares at $0.03 per share for gross proceeds of $20,000.01. The first tranche of the financing closed on April 15, 2016 on similar terms and resulted in gross proceeds of $623,313.36.

NWE intends to use the proceeds from the financing to repay certain bank indebtedness ($200,000), for equipment purchases and financing (up to $85,000) and for general operational purposes (up to $340,000). Such use of proceeds is an estimation based upon information currently known to NWE and management’s actual use of proceeds may vary materially from those noted here depending upon changing circumstances and/or any corporate mergers or acquisitions or other strategic transactions that the company may undertake.

The financing is subject to customary conditions, including final acceptance by the TSX Venture Exchange. All common shares issued pursuant to the second tranche of the financing are subject to a hold period expiring August 28, 2016.

ABOUT NEW WEST ENERGY SERVICES

NWE management and operations personnel have over 20 years of experience in oil and gas services throughout western Canada. The company uses advanced technology and processes in drilling waste and water management, including transport and disposal. Through its subsidiaries, NWE services the drilling, completions and production sectors and operates a fleet of modern straight, combo and hydro vac trucks as well as end dumps, water and tank trucks with bulk transport trailers. NWE is also a recognized leader in comprehensive environmental services. NWE’s main service centres are located in Beaverlodge and Medicine Hat, Alberta, and its head office is in Calgary, Alberta.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements and Information

Except for the statements of historical fact contained herein, certain information presented herein constitutes forward-looking statements and/or information. The forward-looking statements and information contained in this press release are solely opinions and forecasts which are uncertain and subject to risks. Forward-looking statements and information include, but are not limited to, uncertainties and other factors which may cause the actual results, performance or achievements of NWE to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such forward-looking statements and information are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties. Accordingly, readers are cautioned that the assumption used in the preparation of the forward-looking statements, although considered reasonable at the time of preparation may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements and information.

The forward-looking statements and information contained in this press release are made as of the date of this press release. Except as required by law, NWE disclaims any intention and assumes no obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. Additionally, NWE undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters disclosed in this press release.

New West Energy Services Inc.
Gerry E. Kerkhoff
President and Chief Executive Officer
403.984.9798
1.888.977.2327 (BEAR)
gkerkhoff@newwestenergyservices.com

New West Energy Services Inc. Announces Closing of Private Placement Financing

By | 2016

CALGARY, ALBERTA–(Marketwired – April 18, 2016) – NEW WEST ENERGY SERVICES INC. (TSX VENTURE:NWE) today announced the closing of its previously announced non-brokered private placement financing through the issuance of 20,777,112 common shares at $0.03 per share for gross proceeds of $623,313.36.

NWE President and Chief Executive Officer, Gerry E. Kerkhoff, commented: “With the closing of our financing, we are very pleased with the vote of confidence shown by our participating shareholders and new investors. We have strengthened our balance sheet and believe that through execution of our strategic plan we will be well positioned to create significant shareholder value when oil and gas prices rebound and field activity levels improve.”

NWE intends to use the proceeds from the financing to repay certain bank indebtedness ($200,000), for equipment purchases and financing (up to $85,000) and for general operational purposes (up to $340,000). Such use of proceeds is an estimation based upon information currently known to NWE and management’s actual use of proceeds may vary materially from those noted here depending upon changing circumstances and/or any corporate mergers or acquisitions or other strategic transactions that the company may undertake.

The financing is subject to customary conditions, including final acceptance by the TSX Venture Exchange. All common shares issued pursuant to the financing are subject to a hold period expiring August 16, 2016.

ABOUT NEW WEST ENERGY SERVICES

NWE management and operations personnel have over 20 years of experience in oil and gas services throughout western Canada. The company uses advanced technology and processes in drilling waste and water management, including transport and disposal. Through its subsidiaries, NWE services the drilling, completions and production sectors and operates a fleet of modern straight, combo and hydro vac trucks as well as end dumps, water and tank trucks with bulk transport trailers. NWE is also a recognized leader in comprehensive environmental services. NWE’s main service centres are located in Beaverlodge and Medicine Hat, Alberta, and its head office is in Calgary, Alberta.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements and Information

Except for the statements of historical fact contained herein, certain information presented herein constitutes forward-looking statements and/or information. The forward-looking statements and information contained in this press release are solely opinions and forecasts which are uncertain and subject to risks. Forward-looking statements and information include, but are not limited to, uncertainties and other factors which may cause the actual results, performance or achievements of NWE to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such forward-looking statements and information are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties. Accordingly, readers are cautioned that the assumption used in the preparation of the forward-looking statements, although considered reasonable at the time of preparation may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements and information.

The forward-looking statements and information contained in this press release are made as of the date of this press release. Except as required by law, NWE disclaims any intention and assumes no obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. Additionally, NWE undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters disclosed in this press release.

New West Energy Services Inc.
Gerry E. Kerkhoff
President and Chief Executive Officer
403.984.9798 or 1.888.977.2327 (BEAR)
gkerkhoff@newwestenergyservices.com

New West Energy Services Inc. Announces Private Placement Financing Approved Overwhelmingly by Shareholders

By | 2016

CALGARY, ALBERTA–(Marketwired – April 11, 2016) – NEW WEST ENERGY SERVICES INC. (TSX VENTURE:NWE) today announced that at the special meeting held on April 7, 2016, NWE shareholders overwhelmingly approved the previously announced proposed private placement financing and the creation of a new “control person” in William A. Rand, NWE’s Chairman.

At the meeting, 45.44% of the issued and outstanding common shares were represented. After excluding the votes attaching to the common shares held by Mr. Rand and the other NWE directors who are expected to participate in the proposed financing, 97.77% of the common shares represented at the meeting were voted in favour of proposed financing and creation of a new control person.

NWE President and Chief Executive Officer, Gerry E. Kerkhoff, commented: “We are very pleased that our shareholders have so strongly endorsed New West’s strategy of strengthening its balance sheet and positioning itself to create significant shareholder value when oil and gas prices rebound and field activity levels improve.”

“NWE has a long and trusted track record in oil and gas services throughout western Canada. These are very challenging times for the oil and gas industry but thanks to our strong customer base we have shown resilience and are following through on our focus of completing strategic acquisitions that provide additional service capacity, both in scale and geographic scope, to our current and future customers. While our core business will remain tied to drilling waste and water management, including transport and disposal, we intend to explore opportunities that would allow NWE to expand its service offering to a broader range of customers,” noted Mr. Kerkhoff.

Non-Brokered Private Placement Expected to Close Shortly

In order to strengthen its balance sheet, NWE previously announced that it intends to complete a non-brokered private placement financing of up to 33,333,333 common shares to be issued at a price of $0.03 per share for aggregate gross proceeds of up to $1,000,000.

The closing of the financing is subject to applicable regulatory approvals, including approval of the TSXV and is expected to close shortly. All common shares issued pursuant to the private placement will be subject to a hold period of four months and one day.

ABOUT NEW WEST ENERGY SERVICES

NWE management and operations personnel have over 20 years of experience in oil and gas services throughout western Canada. The company uses advanced technology and processes in drilling waste and water management, including transport and disposal. Through its subsidiaries, NWE services the drilling, completions and production sectors and operates a fleet of modern straight, combo and hydro vac trucks as well as end dumps, water and tank trucks with bulk transport trailers. NWE is a recognized leader in comprehensive environmental services, with management contributing to the establishment of the first guidelines in Alberta for Landspray While Drilling. NWE’s main service centres are located in Beaverlodge and Medicine Hat, Alberta, and its head office is in Calgary, Alberta.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements and Information

Except for the statements of historical fact contained herein, certain information presented herein constitutes forward-looking statements and/or information. More particularly, this press release contains statements and information concerning the terms of the private placement, obtaining TSXV and regulatory approvals and the timing of closing. The forward-looking statements and information contained in this press release are solely opinions and forecasts which are uncertain and subject to risks. Forward-looking statements and information include, but are not limited to, uncertainties and other factors which may cause the actual results, performance or achievements of NWE to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such forward-looking statements and information are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties. Accordingly, readers are cautioned that the assumption used in the preparation of the forward-looking statements, although considered reasonable at the time of preparation may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements and information.

The forward-looking statements and information contained in this press release are made as of the date of this press release. Except as required by law, NWE disclaims any intention and assumes no obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise. Additionally, NWE undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters disclosed in this press release.

New West Energy Services Inc.
Gerry E. Kerkhoff
President and Chief Executive Officer
403.984.9799
403.984.9798 or 1.888.977.2327 (BEAR)
gkerkhoff@newwestenergyservices.com

New West Energy Services Inc. Announces Its Third Quarter Results

By | 2016

CALGARY, ALBERTA–(Marketwired – March 31, 2016) – New West Energy Services Inc. (TSX VENTURE:NWE) (the “Corporation”) is pleased to announce the financial results for the Corporation for its third quarter ended January 31, 2016.

HIGHLIGHTS

Operational and Financial Results for the third quarters ended January 31, 2016 and 2015:

  • Revenue of $3.76 million (2015 – $6.85 million).
  • Gross margin of $1.03 million (2015 – $1.60 million).
  • Net loss from operations of $160,000 (2015 – net loss of $792,000). Included in the net loss for 2015 was a non-cash item of a loss on goodwill impairment of $650,000.
  • Loss per share (basic and diluted) of $0.002 (2015 – $0.008).
  • EBITDA was $222,000 (2015 $263,000). This calculation is a non-IFRS measure.
  • The Corporation continued to reduce costs during the quarter which included further compensation reductions related to field and office personnel in response to the prolonged slowdown in the oil and gas industry due to low oil and gas prices.

Company Developments:

Due to the reduction in Western Canadian drilling activity since mid 2014, when oil prices started to decline, the Corporation has initiated and continues to take steps to reduce costs to prepare for a prolonged period of lower activity. Direct and overhead costs have been reduced significantly and continue to be monitored on a monthly basis to stay in line with customer requirements and overall activity levels. Management will continue to review the financial position of the Corporation and will consider various options to support its current and future cash flow requirements.

Subsequent to the quarter end, the Corporation has announced that it intends to complete a non-brokered private placement of up to 33,333,333 common shares of the Corporation to be issued at a price of $0.03 per share for aggregate gross proceeds of up to $1,000,000. The proceeds will be used to repay certain bank indebtedness as well as equipment purchases and general working capital. The closing of the private placement is subject to shareholders’ and applicable regulatory approvals.

The Corporation announced that it has engaged PwC Corporate Finance, which specializes in providing M&A related advisory services, as its exclusive advisor to assist with target identification, valuation analysis, structuring and negotiations. Management believes that now is the time to pursue a strategic acquisition or merger which would add shareholder value and position the Corporation for future growth and diversification when activity levels increase again.

OUTLOOK AND STRATEGY

The Corporation has two operating segments – Vacuum Truck Services and Environmental Services – which have a solid client base of over 150 oil and gas operators and service companies. With the current oil price, activity levels have decreased substantially and the Corporation expects activity to remain depressed for the first half of 2016. The Corporation has reduced its rates by approximately 15 to 25% depending on the type of service offered but has also decreased operating and overhead costs to remain in line with those reductions.

The Corporation has initiated a research and development project which involves the transportation of unstabilized drill cuttings. The Corporation has completed the design phase and anticipates a prototype unit to be completed during the spring breakup period of 2016.

With activity levels expected to remain low for the next several months, the Corporation will closely monitor its cash flow during this period.

OVERVIEW

Through its subsidiaries, the Corporation operates a fleet of straight, combo and hydro vac trucks as well as end dumps, water and tank trucks with bulk transport trailers and environmental services. The Corporation operates throughout Western Canada in the drilling, completions and production sectors of the oil and gas industry with its main service centres located in Beaverlodge and Medicine Hat with its head office in Calgary, Alberta.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Gerry E. Kerkhoff
New West Energy Services Inc.
President & Chief Executive Officer
403.984.9799
403.984.9798 or 1.888.977.2327 (BEAR)
gkerkhoff@newwestenergyservices.com
www.newwestenergyservices.com

New West Energy Services Inc. Announces New Acquisition Strategy, Non-Brokered Private Placement and Special Meeting

By | 2016

CALGARY, ALBERTA–(Marketwired – March 2, 2016) – NEW WEST ENERGY SERVICES INC. (“NWE”) (TSX VENTURE:NWE) today made a number of important announcements, including a new acquisition strategy, a proposed non-brokered private placement and the calling of a special meeting of shareholders.

NWE President and Chief Executive Officer, Gerry E. Kerkhoff, commented: “NWE has a long and trusted track record in oil and gas services throughout western Canada. These are very challenging times for the oil and gas industry but thanks to our strong customer base we have shown resilience and believe that now is the time to look at strategic acquisitions. We intend to focus on transactions that provide additional service capacity, both in scale and geographic scope, to our current and future customers. While our core business will remain tied to drilling waste and water management, including transport and disposal, we intend to explore opportunities that would allow NWE to expand its service offering to a broader range of customers.”

“We are confident that by strengthening our balance sheet now through a private placement financing and completing transactions of strategic importance, we will be well positioned to create significant shareholder value when oil and gas prices rebound and field activity levels improve,” noted Mr. Kerkhoff.

Acquisition Strategy

NWE announced that it will pursue acquisitions or mergers with operating businesses that strengthen its market presence throughout western Canada. As part of these efforts, NWE has engaged PwC Corporate Finance, which specializes in providing M&A related investment banking advisory services, as its exclusive advisor to assist with target identification, valuation analysis, structuring and negotiations.

While NWE cannot give assurances of any acquisition or merger ultimately being consummated, the company has had initial discussions with several companies that fit its target profile. NWE’s target profile for acquisition or merger candidates includes companies with synergistic operations, stable or increasing revenues, sustainable cash flows and manageable debt levels.

Non-Brokered Private Placement

In order to strengthen its balance sheet, NWE announced that it intends to complete a non-brokered private placement of up to 33,333,333 common shares of NWE to be issued at a price of $0.03 per share for aggregate gross proceeds of up to $1,000,000.

William A. Rand, the Chairman and a Director and insider of NWE, has noted his intention to subscribe for a minimum of one-third of the offering (i.e., 11,111,111 common shares). Mr. Rand may purchase additional shares in the financing. Mr. Rand currently holds 18,459,070 common shares of NWE, being approximately 19.07% of the outstanding common shares of NWE. Assuming completion of the full amount of the private placement and sale to Mr. Rand of 11,111,111 common shares, Mr. Rand will hold upon closing approximately 22.73% of the issued and outstanding common shares of NWE.

Mr. Rand would upon closing become a “control person” pursuant to the policies of the TSX Venture Exchange (the “TSXV”) and his participation in the private placement constitutes a “related party transaction” as such term is defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions and Policy 5.9 of the TSXV.

To comply with the minority shareholder approval requirements of the TSXV and MI 61-101, the private placement will be subject to the approval of the shareholders of NWE by ordinary resolution at a special meeting scheduled for April 7, 2016, excluding the votes attaching to the common shares held by Mr. Rand and any other NWE directors participating in the financing.

NWE intends to use the proceeds from the private placement to repay certain bank indebtedness ($200,000), for equipment purchases and financing (up to $160,000) and for general operational purposes (up to $640,000). Such use of proceeds is an estimation based upon information currently known to NWE and management’s actual use of proceeds may vary materially from those noted here depending upon changing circumstances and/or any corporate mergers or acquisitions or other strategic transactions that the company may undertake.

The directors of NWE, after giving due consideration to market conditions and the capital needs of NWE, have determined that the private placement is in the best interests of NWE.

The closing of the private placement is subject to applicable regulatory approvals, including approval of the TSXV and is expected to close shortly after the special meeting of NWE scheduled for April 7, 2016. All common shares issued pursuant to the private placement will be subject to a hold period of four months and one day.

Special Meeting Scheduled for April 7, 2016

NWE announced that it will be holding a special meeting of shareholders on April 7, 2016 at 10:00 a.m. (Pacific Time) at Suite 2200, 885 West Georgia Street, Vancouver, British Columbia.

At the meeting, the shareholders of NWE will be asked to consider and, if thought fit, to pass an ordinary resolution approving the private placement and the creation of a new control person.

To pass, this ordinary resolution requires the approval of a majority of the votes cast in person or by proxy at the meeting, excluding the votes attaching to the common shares held by Mr. Rand and any other NWE directors participating in the financing.

A notice of meeting and information circular in respect of the special meeting will provide further details regarding the private placement and will be mailed to the shareholders of NWE in due course.

ABOUT NEW WEST ENERGY SERVICES

NWE management and operations personnel have over 20 years of experience in oil and gas services throughout western Canada. The company uses advanced technology and processes in drilling waste and water management, including transport and disposal. Through its subsidiaries, NWE services the drilling, completions and production sectors and operates a fleet of modern straight, combo and hydro vac trucks as well as end dumps, water and tank trucks with bulk transport trailers. NWE is a recognized leader in comprehensive environmental services, with management contributing to the establishment of the first guidelines in Alberta for Landspray While Drilling. NWE’s main service centres are located in Beaverlodge and Medicine Hat, Alberta, and its head office is in Calgary, Alberta.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

Except for the statements of historical fact contained herein, certain information presented herein constitutes “forward-looking statements”. More particularly, this press release contains statements concerning the terms of the private placement, the use of proceeds, the anticipated sizes of individual subscriptions to the private placement, obtaining TSXV and regulatory approvals and the timing of closing. The forward-looking statements contained in this press release are solely opinions and forecasts which are uncertain and subject to risks. Forward-looking statements include but are not limited to uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties. Accordingly, readers are cautioned that the assumption used in the preparation of the forward-looking statements, although considered reasonable at the time of preparation may prove to be imprecise and, as such undue reliance should not be placed on forward-looking statements.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Corporation disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Corporation undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters disclosed in this press release.

New West Energy Services Inc.
Gerry E. Kerkhoff
President & Chief Executive Officer
403.984.9799
403.984.9798 or 1.888.977.2327 (BEAR)
gkerkhoff@newwestenergyservices.com
www.newwestenergyservices.com

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