Western Energy Services to redeem $4 million in outstanding convertible debentures

By Sheri Kasprzak

New York, Sept. 29 - Western Energy Services Corp. said it plans to redeem the remaining $2 million in principal of its outstanding series I convertible debentures and $2 million in principal of its outstanding series II convertible debentures.

The redemption will be completed on Oct. 20.

The 12% debentures are convertible into common shares at $0.18 each and were first sold in fall of 2004.

"The elimination of $4 million of secured debt will give us significant financial strength and flexibility going forward," said Lindsey Mitchell, the company's chief executive officer, in a statement. "The result of this conversion is that our debt-to-equity ratio moves from 1.9:1 to 0.3:1 and, most importantly, results in an additional $40,000 per month of accessible cash flow."

Based in Calgary, Alta., Western Energy services provides equipment and services to the oil and natural gas exploration sector.

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