CALGARY, Jan. 6, 2020 /CNW/ - Western Energy Services Corp. (the "Company" or "Western") (TSX: WRG) is pleased to announce that its Board of Directors (the "Board") has approved, subject to acceptance by the Toronto Stock Exchange ("TSX"), the repurchase of up to 5,200,000 common shares of Western, which is approximately 10% of Western's public float as at January 6, 2020, over a period of twelve months pursuant to a normal course issuer bid to be conducted in accordance with the rules of the TSX (the "Bid").

The Company's Board and management believe that the purchase by the Company of its outstanding common shares pursuant to the proposed repurchase program constitutes an attractive and appropriate investment of corporate funds. The Company's Board and management further believe that market prices of the common shares do not properly reflect the underlying value of the Company's assets and business. The primary purposes of the Bid are to provide extra liquidity to shareholders of Western who wish to dispose of their common shares, and to enhance the potential future value of the common shares which remain outstanding.

As and when considered advisable by the Company, common shares will be repurchased through the facilities of the TSX and any other markets and available trading systems at the market price at the time of purchase, in accordance with the applicable rules and policies of the TSX and applicable Canadian securities laws. The actual number of common shares that will be repurchased, and the timing of any such purchases, will be determined by the Company, subject to the limits imposed by the TSX. There cannot be any assurances as to the number of common shares that will ultimately be acquired by the Company. Any common shares purchased by the Company under the share repurchase program will be cancelled.

About Western

Western is an oilfield service company which provides contract drilling services in Canada through its Horizon Drilling division and in the United States through its wholly-owned subsidiary Stoneham Drilling Corporation.  In Canada, Western also provides well servicing through its Eagle Well Servicing division and provides oilfield rental services through its Aero Rental Services division.  Stoneham's division, Western Oilfield Services, provides well servicing operations in the United States.

Forward‐Looking Statements and Information

This press release contains forward‐looking statements and forward‐looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "will", "outlook" and similar expressions are intended to identify forward‐looking information or statements. More particularly and without limitation, this press release contains forward‐looking statements and information relating to Western's intention to commence a share repurchase program, including acceptance thereof by the TSX, and the ability of the Company to acquire common shares under the proposed share repurchase program, including the timing of any such purchases. 

These forward‐looking statements and information are based on certain key expectations and assumptions made by Western, including market conditions being appropriate to repurchase shares, the availability of any contractual consents necessary to carry out the Bid and the availability of cash resources to proceed with the Bid as planned.  Although Western believes that the expectations and assumptions on which such forward‐looking statements and information are based are reasonable, undue reliance should not be placed on the forward‐looking statements and information as Western cannot give any assurance that they will prove to be correct. Since forward‐looking statements and information 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. These include, but are not limited to, risks associated with general economic conditions, the demand for Western's services, volatility in market prices for oil and natural gas and the effect of this volatility on the demand for oilfield services generally, currency exchange rate risk, potential changes in cost structures in Western's industry, compliance with covenants and/or repayment obligations under Western's credit facilities, changes in legislation, dependence on, and concentration of, major customers, and the creditworthiness and performance by Western's counterparties and customers.

Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other risk factors that could affect Western's operations or financial results are included in Western's annual information form and may be accessed through the SEDAR website (www.sedar.com). The forward‐looking statements and information contained in this press release are made as of the date hereof and Western does not undertake any obligation to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

SOURCE Western Energy Services Corp.

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