IROC Energy Services Corp. : November 23, 2011 IROC Energy Services Corp. announces approval of $21 million capital expenditures

IROC Energy Services Corp. announces approval of $21 million capital expenditures

Nov 23, 2011

CALGARY, Nov. 23, 2011 /CNW/ - IROC Energy Services Corp. ("IROC" or the "Corporation") (TSXV: "ISC") is pleased to announce the Board of Directors has initially approved $21 million for capital spending for 2012. The bulk of the new equipment will be built and deployed to meet existing demand in our service rig and rental divisions. A strong balance sheet and excess free cash flow will allow IROC a great deal of flexibility in dealing with additional opportunities for growth as they develop during the first half of 2012.

Eagle Well Servicing
Eagle Well Servicing ("Eagle") is IROC's largest operating division. Eagle started 2011 with 36 rigs and expects to exit 2011 with 43 rigs. For 2012, the Corporation has budgeted $12.5 million for an additional 5 service rigs, with the first rig expected to be delivered at yearend and the remaining 4 service rigs currently scheduled for delivery during the first half of 2012. This will bring our currently planned fleet configuration to 47 service rigs, consisting of 22 singles, 22 doubles, 1 heavy double, and 2 slant rigs. Building slots for the 5 additional service rigs have been secured and the Corporation has started to commit to capital expenditures relating to these new service rigs. These 5 new service rigs were previously announced in our news release dated October 25, 2011.

Aero Rental Services
With the increase in drilling and field service activity in the last 12 months, IROC's rental services division remains strong and continues to grow. For 2012, the Corporation has approved $8.0 million for Aero to continue increasing its rental assets through targeted equipment purchases aimed at meeting current or anticipated customer demand, primarily in our core competency of pressure control.

Helix Coil Services
Helix Coil Services began operations in July 2011 with the deployment of two truck mounted units, each with 2" capabilities placing the equipment in the intermediate size range. We have also added one trailer unit with 2" capabilities along with pumping and crane support equipment. The coil operation is very complementary to our other service lines and, as expansion opportunities present themselves, we will not hesitate to act upon them. However, at this time we have made no specific capital allocations or budget for this division.

Maintenance Capital
In addition to the capital additions noted above, the Corporation has approved $0.5 million for other miscellaneous capital expenditures, including IT infrastructure and maintenance capital. At current operating levels, the Corporation is anticipated to fund spending on all budgeted capital expenditures through operating cash flow and existing credit facilities.

Acquisitions 
The Corporation has a capacity for greater capital expenditures than are currently being planned and the Corporation will be actively seeking other opportunities for growth through targeted asset or business acquisitions engaged in our existing or highly complementary businesses.

About IROC Energy Services Corp.
IROC Energy Services Corp. is an Alberta oilfield services company that, through the IROC Energy Services Partnership, provides a diverse range of products, services and equipment to the oil and gas industry that is among the newest and most innovative in the WCSB. IROC Energy Services Partnership operates under the business names of Eagle Well Servicing, Aero Rental Services and Helix Coil Services. IROC combines cutting-edge technology with depth of experience to deliver a product and services offering in the following core areas: well servicing & equipment, rental services and coil tubing services. For more information on IROC Energy Services Corp., visit our website at www.iroccorp.com.

Cautionary Statement Regarding Forward Looking Information and Statements
Certain information contained in this news release, including information related to the Corporation's level of utilization, future capital expenditures, anticipated equipment counts and information or statements that contain words such as "forecasted", "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "likely", "estimate", "predict", "potential", "continue", "maintain", "retain", "grow", and similar expressions and statements relating to matters that are not historical facts, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. This information or these statements are based on certain assumptions and analysis made by the Corporation in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances, and the statements contained in this news release speak only as of the date hereof.

Whether actual results, performance or achievements will conform to the Corporation's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Corporation's expectations. Such risks and uncertainties include, but are not limited to:  fluctuations in the price and demand for oil and natural gas; fluctuations in the level of oil and natural gas exploration and development activities; fluctuations in the demand for well servicing and ancillary oilfield services; capital market liquidity available to fund oil and gas exploration and development programs; the effects of seasonal and weather conditions on operations and facilities; the highly competitive  operating environment inherent in well servicing and ancillary oilfield services; general economic, market or business conditions; changes in laws or regulations; the availability of qualified operational and management personnel; currency exchange and interest rate fluctuations; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities and counterparty credit risk; changes in income tax laws or changes in tax laws, crown royalty rates and incentive programs relating to the oil and gas industry; risks associated with government regulations and environmental health and safety matters; and other unforeseen conditions which could impact the use of equipment and services supplied by IROC.

Consequently, all of the forward-looking information and statements made in this news release are qualified by this cautionary statement and there can be no assurance that the actual results will be realized. Except as may be required by law, the Corporation assumes no obligation to update publicly any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.

Other
This press release is not for dissemination in United States or to any United States news services.  The Common Shares of IROC have not and will not be registered on the United States Securities Act of 1933, as amended (the "United States Securities Act") or any state securities laws and are not offered or sold in the United States or to any US person except in certain transactions exempt from the registration requirements of the United States Securities Act and applicable state securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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