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VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 11, 2016) - Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company") today reported its financial results for the nine months ending December 31, 2015. All amounts are in Canadian Dollars unless otherwise noted.
Financial and Operational Summary for the nine-month period ending December 31, 2015
The Company has two reportable segments for its continuing operations: its FRP pipe manufacturing and its oil and gas production. The pipe segment produces and sells fiberglass reinforced plastic ("FRP") pipe for the oil and gas industry and other infrastructure applications. The oil and gas segment is engaged in the exploration and production of oil and natural gas in Western Canada.
For the nine months ending December 31, 2015:
Update on FRP Pipe Sales in Canada
As previously disclosed the Company's Canadian market for its FRP pipe products is considered a new growth market. Despite the current oil and gas industry downturn Hanwei has approximately 75,000 meters of its FRP pipe installed and operational in Alberta and Saskatchewan.
Update on Oil and Gas Activities
The Company's Chestermere Lands are subject to a Commitment Agreement where the Company has been granted exclusive production rights on the basis that it drills and completes at least one oil and gas well to a depth of 2,100 meters within an initial two-year term ending on July 30, 2017 (the "Primary Term"). Upon completion of this drilling commitment the Primary Term would be extended for a further one-year period ending on July 30, 2018. As of the date of this MD&A the Company is undertaking the drilling and completion of a single, new vertical well within the Chestermere Lands to fulfill its Primary Term obligation and assess the exploitability of production on this property. The Company has established a limited budget of $2.1 million to complete this well and place it on production. Production results will be announced when tie in, operating approvals and production is forthcoming.
Hanwei will host a conference call to discuss its operational and financial results for the third quarter ended December 31, 2015. Graham Kwan, Executive Vice President and Rick Huang, Chief Financial Officer of Hanwei will host the call. Management invites analysts and investors to participate on the conference call:
Date: Friday, February 12, 2016
Time: 1:00 p.m., Eastern Time (10:00 am Pacific Time)
Dial in number: 1-888-510-1786 or 1-719-325-2420
A replay of the conference call will be available on the Company's website.
About Hanwei Energy Services Corp.
Hanwei Energy Services Corp.'s principal business operations are in two complimentary key segments of the oil and gas industry as both an equipment supplier to the industry (as a leading manufacturer of high pressure, fiberglass reinforced plastic ("FRP") pipe products and associated technologies serving major energy customers in the global energy market) and as an owner and operator of its oil and gas mineral rights at its lands in Alberta.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING INFORMATION AND NON-GAAP MEASURES
Certain information in this press release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions a description of which is set out in the risk factors section of the Company's Annual Information Form dated June 17, 2015 and Management Discussion and Analysis for the year ended March 31, 2015 both of which are filed with Canadian securities regulators and available on SEDAR at www.sedar.com. The forward-looking information in this press release describes the Company's expectations as of the date of this press release.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, THE COMPANY DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME, EXCEPT AS REQUIRED BY APPLICABLE SECURITIES LEGISLATION.
Hanwei Energy Services Corp.
Executive Vice President, Strategic Development and
Hanwei Energy Services Corp.
Yucai (Rick) Huang
Chief Financial Officer