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January 25, 2012 07:00 ET
Leader Energy Services Provides Fourth Quarter Financial Guidance And 2012 Capital Spending Budget
CALGARY, ALBERTA--(Marketwire - Jan. 25, 2012) - Leader Energy Services Ltd. ("Leader" or the "Company") (TSX VENTURE:LEA) today announced that it expects revenue for the fourth quarter ending December 31, 2011 to exceed $11.0 million, an increase of approximately 25% over the comparable quarter last year and approximately 10% higher than the third quarter of 2011. Revenue for the fourth quarter exceeded internal expectations. The Company anticipates robust demand for its services through to spring breakup. Audited financial results for the year ended December 31, 2011 are expected to be released in early April 2012.
Leader's board of directors has approved an initial capital budget of $4.5 million for 2012. The majority of funds will be used to expand the Company's deep coiled tubing and fluid pumping capacity, with deliveries expected in the second half of 2012. Capital expenditures will be financed through operating cash flow. Any further increases to the 2012 capital budget will be determined by the end of the second quarter.
While Leader continues to invest in its equipment fleet during periods of high demand, the Company expects to utilize operating cash flow to reduce corporate indebtedness during the course of 2012.
Leader Energy Services Ltd. provides well stimulation services in western Canada. Further information on Leader can be found under the Company's listing at www.sedar.com and on the Company's website at www.leaderenergy.com.