CALGARY, AB, Dec. 3, 2020 /CNW/ - (TSXV: CWC) CWC Energy
Services Corp. ("CWC" or the "Company") is pleased to announce that
the Board of Directors has approved a 2021 capital expenditure
budget of $3.9 million which includes
$0.8 million carried over from the
2020 capital expenditure budget. Of this $3.9 million, $2.7
million is for maintenance and infrastructure capital
related to re-certifications, additions and upgrades to field
equipment for the drilling rig and service rig divisions as well as
information technology infrastructure, with the remaining
$1.2 million being growth capital to
upgrade two of the drilling rigs. The 2021 capital expenditures
budget is consistent with CWC's commitment to safety and
operational efficiency with high quality and well maintained
equipment. CWC intends to finance its 2021 capital
expenditures budget from operating cash flows.
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The Board of Directors has also approved the granting of
11,767,974 restricted share units of the Company on December 3, 2020 to certain directors, officers
and employees of the Company. Of the 11,767,874 restricted
share units granted, 3,379,974 units vest immediately and 8,388,000
units vest one third annually on each of the first, second and
third anniversaries from the date of grant. All 11,767,874
restricted share units expire on December
15 of the third year following the year in which the
restricted share units are granted.
The Company continues to be committed to disciplined fiscal
management and pursuit of opportunities driven by the current
industry environment. Management continues to evaluate and assess
merger and acquisition opportunities of service businesses and
assets that are best-in-class that would have the potential to
increase shareholder value.
About CWC Energy Services Corp.
CWC Energy Services Corp. is a premier contract drilling and
well servicing company operating in the WCSB and the United States with a complementary suite
of oilfield services including drilling rigs, service rigs and
swabbing rigs. The Company's corporate office is located in
Calgary, Alberta, with a U.S.
office in Denver, Colorado and
operational locations in Nisku,
Grande Prairie, Slave Lake, Sylvan
Lake, Drayton Valley,
Lloydminster, Provost, and Brooks,
Alberta. The Company's shares trade on the TSX Venture
Exchange under the symbol "CWC".
READER ADVISORY - 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.
This news release contains certain forward-looking
information and statements within the meaning of applicable
Canadian securities legislation. Certain statements contained
in this news release may contain such words as "anticipate",
"could", "continue", "should", "seek", "may", "intend", "likely",
"plan", "estimate", "believe", "expect", "will", "objective",
"ongoing", "project" and similar expressions are intended to
identify forward-looking information or statements. In particular,
this news release contains forward-looking statements including
management's assessment of future plans and operations, planned
levels of capital expenditures, and plans to finance such
expenditures, plans to evaluate acquisition opportunities,
expectations as to activity levels, expectations on the
sustainability of future cash flows and earnings, expectations with
respect to crude oil and natural gas prices, activity levels in
various areas, continuing focus on cost saving measures,
expectations regarding the level and type of drilling and
production and related drilling and well services activity in the
WCSB and U.S. basins, expectations regarding entering into long
term drilling contracts and expanding its customer base, and
expectations regarding the business, operations, revenue and debt
levels of the Company in addition to general economic
conditions. Although the Company believes that the
expectations and assumptions on which such forward-looking
information and statements are based are reasonable, undue reliance
should not be placed on the forward-looking information and
statements because the Company can give no assurances that they
will prove to be correct. Since forward-looking information
and statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks including the implications of
the COVID-19 health pandemic on the Company's business, operations
and personnel. These factors and risks include, but are not
limited to, the risks associated with the COVID-19 health pandemic
and their implications on the demand and supply in the drilling and
oilfield services sector (ie. demand, pricing and terms for
oilfield drilling and services; current and expected oil and gas
prices; exploration and development costs and delays; reserves
discovery and decline rates; pipeline and transportation capacity;
weather, health, safety and environmental risks), significant
expansion measures to stop the spread of COVID-19 further
restricting or prohibiting the operations of the Company's
facilities and operations, actions to ensure social distancing due
to COVID-19, the Company's cash saving initiatives, integration of
acquisitions, competition, and uncertainties resulting from
potential delays or changes in plans with respect to acquisitions,
development projects or capital expenditures and changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations, stock market volatility and the
inability to access sufficient capital from external and internal
sources. Accordingly, readers should not place undue reliance
on the forward-looking statements. Readers are cautioned that
the foregoing list of factors is not exhaustive. Additional
information on these and other factors that could affect the
Company's financial results are included in reports on file with
applicable securities regulatory authorities and may be accessed
through SEDAR at www.sedar.com. The forward-looking
information and statements contained in this news release are made
as of the date hereof and the Company undertakes no obligation to
update publicly or revise any forward-looking information or
statements, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws. Any
forward-looking statements made previously may be inaccurate
now.
SOURCE CWC Energy Services Corp.