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Western Energy Services Corp V.WRG


Primary Symbol: T.WRG Alternate Symbol(s):  WEEEF

Western Energy Services Corp. is a Canada-based energy services company that provides contract drilling services in Canada and in the United States and production services in Canada through its various divisions, its subsidiary, and its first nations relationships. The Company's services include Horizon Drilling, Stoneham Drilling, Eagle Well Servicing and Aero Rental Services. Its contract drilling business includes drilling rigs along with related ancillary equipment. Its production services business includes well servicing rigs and related equipment, as well as rental equipment. It markets a fleet of approximately 41 drilling rigs specifically suited for drilling complex horizontal wells across Canada and the United States. The Company operates around 63 well servicing rigs. Its drilling rigs can include features such as AC power, top drive, dual fuel, automated pipe handling, automated catwalk, hydraulic substructure levelling, hydraulic BOP handling and Range III tubulars.


TSX:WRG - Post by User

Post by RetailRubeon Oct 26, 2018 6:00am
80 Views
Post# 28876105

Deferring drilling cannot continue much longer

Deferring drilling cannot continue much longerIf an E&P company's Reserve Life is 7 years (say), and they shut down drilling when the oil price collapsed in 2014, then by the end of 2018 they should have only about 3 years reserves left.  You can't run down inventory forever.  Eventually E&P companies will need to start drilling again or else go out of business.  WRG's problem is nobody is doing much drilling right now.

ESN and SDY are also near their lows.  SDY did share buy-backs but that only helped briefly.  WRG and all drillers are for patient investors only.

Revenue results for drillers are seasonal.  3Q is a typically a ho-hum quarter.  4Q is better.  1Q is the best quarter in the year.  I continue to wait.
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