Estrella International Energy Services Ltd. Announces Filing of Q2 Financial Statements

TORONTO, ONTARIO--(Marketwired - Aug. 29, 2014) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Estrella International Energy Services Ltd. ("Estrella" or the "Company") (TSX VENTURE:EEN) announces that on August 29, 2014, it filed its Interim Condensed Consolidated Financial Statements and the related Management's Discussion and Analysis ("MD&A") for the three and six month period ended June 30, 2014. Copies of these documents can be found on the SEDAR website at www.sedar.com. In this press release, except for share amounts, all dollar amounts are in US$ '000 unless otherwise specified.

During the quarter ended June 30, 2014, the Argentine rig market remained stable with the Company's entire Argentine rig fleet (6 rigs) operating on multi-year contracts. The Company placed additional rigs to work in the La Cira region of Colombia, where 6 work-over rigs began a contract for Occidental Petroleum. The Company finished the second quarter of 2014 with 55% average rig utilization. The Company currently has 27 of 45 rigs on contracts.

The Company continues to show significant progress in the Argentine market with its directional drilling alliance with Scientific Drilling International, recording its highest ever quarterly revenue of $2,619. The Company is currently increasing its investment in the Argentine market by bringing new sets of directional drilling tools that will allow it to expand its market position. The Company remains committed to the health and safety of its employees, and finished the second quarter of 2014 with only one lost time accident.

Selected Financial Information for the Quarter Ended June 30, 2014

During the quarter ended June 30, 2014, the Company recorded total revenues of $61,760 ($18,717 in 2013). The revenue for the quarter ended June 30, 2014 was offset by general and administrative expenses of $4,087 ($2,892 in 2013), depreciation of $9,275 ($3,142 in 2013), interest expense of $2,115 ($1,932 in 2013), and oilfield expenses of $55,912 ($15,870 in 2013). For the quarter ended June 30, 2014, the Company recorded other (income) and expense of $89 ($-523 during 2013). EBITDA of the quarter ended June 30, 2014 was $1,761 ($-45 in 2013). This represents the fourth consecutive quarter that the Company has reported positive EBITDA.