WESTERN ENERGY SERVICES CORP. ANNOUNCES EXTENSION OF PAYMENT DEADLINE FOR SECOND GUARANTEE CREDIT FACILITY

CALGARY, AB, December 30, 2021 / CNW / – Western Energy Services Corp. (“Western“) (TSX: WRG) announces that Alberta Investment Management Corporation (“AIMCo“), the lender under its senior credit facility, agreed to postpone the due date for payment of interest under the facility that Western would have been required to pay on January 4, 2022 at February 28, 2022.

Western is currently in discussions with its lenders regarding potential transactions aimed at ensuring long-term financial stability in the current difficult industry environment. The Payment Extension is intended to provide Western with additional flexibility as it explores these potential opportunities. There is no certainty as to whether Western will be able to negotiate or complete new refinancing transactions before the extended payment deadline or not at all.

About the West

Western is an oilfield services company that provides contract drilling services through its Horizon Drilling division to Canada, and its wholly owned subsidiary, Stoneham Drilling Corporation in the United States. Western provides well maintenance and oilfield equipment rental services in Canada through its wholly owned subsidiary Western Production Services Corp. (“Western production servicesWestern Production Services’ division, Eagle Well Servicing provides well maintenance, while its Aero Rental Services division provides oilfield rental services.

Forward-looking statements and information

This press release contains certain statements or disclosures relating to Western that are based on Western’s expectations as well as assumptions made by Western and information currently available to Western that may constitute forward-looking information under applicable securities laws. All information and statements contained in this document which are not clearly historical in nature constitute forward-looking information, and words and expressions such as “may”, “will”, “should”, “could”, “expect” to “,” intention “,” anticipate “,” believe “,” estimate “,” plan “,” potential “,” continue “,” consider “, or the negative of these terms or any other comparable terminology are generally intended to identify forward-looking information.This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information.

In particular, the forward-looking information contained in this press release includes statements relating to potential refinancing transactions that Western may seek to pursue. These statements reflect Western’s current views and intentions with respect to future events, based on information available to Western. In particular, these statements are based on assumptions about the willingness of Western lenders and other parties to negotiate new financing arrangements and the maintenance of current industry conditions affecting Western’s performance and financial condition. While Western believes that the expectations and assumptions upon which these forward-looking statements and information are based are reasonable, no undue reliance should be placed on forward-looking statements and information, as Western cannot guarantee that they will prove to be correct. . Because forward-looking statements and information deal with future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently expected due to a number of factors and risks. These risks include (i) the potential deterioration of industry conditions which could adversely affect Western’s performance and financial condition, (ii) Western’s lenders are no longer willing to negotiate potential refinancing transactions, and (iii) Western’s inability to meet its obligations under its credit facilities. as no additional funding is available, as well as other risk factors are discussed under “Risk Factors” in Western’s AIF for the year ended. the 31st of December, 2020 available on the SEDAR website at www.sedar.com. The forward-looking statements and information contained in this press release are made as of the date hereof and Western assumes no obligation to publicly update or revise any forward-looking statements and information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.

SOURCE Western Energy Services Corp.

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Elaine R. Knight