Hanwei Energy Services Reports First Quarter Fiscal 2016 Financial and Operational Results - Seite 3

Update on Oil and Gas Activities in Canada

During the three months ended June 30, 2015, the Company had four gross wells producing. From these:

• The Company generated revenues net of royalties of $0.7 million and net back of $0.4 million.
  
  
• The Company's netback was $23.47 per boe (or an operating netback margin of 57.6%) for the three months ended June 30, 2015 on an average sales price of $40.73 per boe.
  
  
• The Company produced approximately 167 barrels of oil equivalent per day (boed) for a total of 15,189 boe, including 70 boe/d of oil for a total of 6,464 barrels, 437 mcf/d of gas per day for a total of 39,824 mcf, and 24 boe/d of liquids for a total of 2,145 boe. The majority of the Company's oil production was from its existing 13-33-49-26W4 Nisku horizontal well that was fracked in August 2014.
  
  
• A new Nisku horizontal well 13-4-49-26W4 was drilled in March 2015 which was put on test production following the lifting of the seasonal, spring Alberta road bans on May 14^th, 2015. The Company has not yet placed this well on full production and has undertaken only initial test operations utilizing a temporary pump jack. This will be replaced with a higher volume permanent pump jack together with flow line tie back to the Company's main production battery. The flow line tie back will utilize the Company's 4" diameter, 1,500 PSI, FRP pipe. The Company will report its production results upon completion of these capital works and stabilized operations of this new well.
  
  
• The Company is considering a minimal development program within 2015 that may include a water disposal well and certain facility upgrades that aim to reduce operating costs and improve efficiencies. A limited number of new wells may be considered by the Company. The cost for the aforementioned capital works program is currently being reviewed.
  
  

Hanwei will host a conference call to discuss its operational and financial results for the first quarter ended June 30, 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: Thursday, August 6, 2015

Time: 1:00 p.m., Eastern Time (10:00 am Pacific Time)

Dial in number: 1-888-329-8893 or 1-719-325-2144

A replay of the conference call will be available on the Company's website www.hanweienergy.com.