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TORONTO, ONTARIO--(Marketwired - Aug. 30, 2013) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES
Estrella International Energy Services Ltd. ("Estrella" or the "Company") (TSX VENTURE:EEN) announces that it has filed its Interim Condensed Consolidated Financial Statements and the related Management's Discussion and Analysis ("MD&A") for the three and six month period ended June 30, 2013. Copies of these documents can be found on the SEDAR website at www.sedar.com. In this press release all dollar amounts are in US$ '000 unless otherwise specified.
Financial Highlights for the Quarter Ended June 30, 2013
During the quarter the Company recorded the highest quarterly revenues to date of $18,717 ($16,868 in 2012), this notwithstanding that the Company's rig utilization rate was 57% (49% in 2012). The company achieved an exit utilization in June of 63%, resulting in the highest monthly revenues in the company's history of $6,862. Utilization outside of Colombia continues to be very strong, with further improvements in Colombia being the main area of focus for the company going forward.
The revenues for were offset by general and administrative expenses (exclusive of turnover tax) of $2,528 or 13.5% of revenues ($2,487 in 2012 or 14.7% of revenues), depreciation of $3,142 ($2,859 in 2012), interest expense of $1,932 ($2,338 in 2012) and oilfield expenses of $15,870 ($13,903 in 2012). For the quarter ended June 30, 2012, the Company also recorded other income of $523 ($1,186 during 2012). The net loss was $4,320 ($3,802 in 2012). The Company recorded an EBITDA of -$45 ($204 in 2012).
Significant Events Subsequent to the Quarter End
Subsequent to the quarter end, the Company completed its previously announced acquisition of San Antonio Internacional Co. Inc. ("SAIC") for a purchase price of approximately US$122 million (the "Acquisition"). Full details of the Acquisition and the associated transactions can be found in the Company's press releases dated June 17, 2013 and August 2, 2013.
On August 19, 2013, the Company held its annual general and special meeting of shareholders (the "AGM"). At the AGM the following persons were elected as directors for the Company for the ensuing year: Horacio Reyser, Warren Levy, Riccardo Rodriguez, Daniel Kokogian, Diego Acevedo, Remo Mancini and Phil MacDonnell. Collins Barrow LLP was appointed as auditor of the Company for the ensuing year. The stock option plan for the Company was also approved by the shareholders for the ensuing year.
At the AGM the disinterested shareholders of the Company overwhelmingly approved the proposed private placement of Series B Preference Shares to Ringo Holding L.P. as disclosed in the press release of the Company dated June 17, 2013. The private placement is expected to close in September, 2013.
The shareholders also overwhelmingly approved, as a special resolution, the proposed consolidation of the issued and outstanding common shares of the Company by a ratio of 100:1 or such lesser consolidation ratio as may be approved by the Board of Directors of the Company of at least 10:1. The directors of the Company have not yet fixed the consolidation ratio. It is expected that the consolidation will become effective on the closing date of the private placement referred to above.
About Estrella
Estrella is an oil and natural gas, geothermal and mining service company with operations throughout Latin and South America. It provides conventional drilling services; directional drilling services; tools and equipment sales and rentals; work-over and finishing services; and consulting and engineering services. The Corporation is headquartered in Buenos Aires, Argentina and has operating locations in five countries Latin and South America.
Forward Looking Statements
This press release may contain forward-looking statements which reflect management's expectations regarding future growth, results of operations, performance and business prospects of Estrella. These forward-looking statements may relate to, among other things, forecasts or expectations regarding business outlook for Estrella; commodity prices for oil and natural gas; oil and natural gas demand and production growth; debt service requirements for Estrella; improvements in operating procedures and technology; capital expenditures by Estrella and the oil and gas industry; the business strategies of Estella's customers; future global economic conditions; and future results of operations; expectations regarding the Corporation's ability to raise capital; realization of the anticipated benefits of acquisitions and dispositions, revenue growth, future acquisitions, generation of cash flow, and may also include other statements that are predictive in nature, or that depend upon or refer to future events or conditions, and can generally be identified by words such as "may", "will", "expects", "anticipates", "intends", "plans", "believes", "estimates", "guidance" or similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These statements are not historical facts or guarantees of future performance, but instead represent management's current expectations, estimates and projections regarding future events.
The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Estrella. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release, and Estrella does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.
Neither the 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.
