CALGARY, ALBERTA--(Marketwire - Feb 5, 2013) - Wenzel Downhole Tools Ltd. (WZL.TO) ("Wenzel" or the "Company") is pleased to announce its credit facilities have been increased from a total of $26 million CDN to a total of $40 million CDN.
The increased facilities consist of a $15 million revolving operating demand loan and a $25 million committed revolving loan, both subject to customary financial covenants & availability computations. An initial draw of approximately $18.5 million has been made on the revolving loan to make payment pursuant to the settlement on arbitration previously announced on January 3, 2013.
Ron Patterson, President and CEO, commented: "The increased credit facilities signify the continued financial health of Wenzel. They will allow Wenzel to continue to grow its business in North America and internationally."
About Wenzel Downhole Tools Ltd.
The Company is a designer, manufacturer, seller and renter of drilling tools used in oil and gas exploration, that operates in Canada, the United States and internationally; its shares trade on the Toronto Stock Exchange under the symbol "WZL".
The Company''s Canadian sales, manufacturing and servicing facilities are located in Edmonton, Alberta and its US sales and servicing facilities are located in Conroe, Texas; Morgantown, West Virginia; Casper, Wyoming and Oklahoma City, Oklahoma. It also has a sales and service facility in Celle, Germany.
The main corporate office is located in Calgary, Alberta.
Forward Looking Statements
Certain statements contained in this press release constitute "forward-looking statements". These statements are based on current beliefs and assumptions of management, however are subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from the forward-looking statements in this press release. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. For additional information with respect to certain of these beliefs, assumptions, risks and uncertainties, please refer to The Company''s Annual Information Form for fiscal 2011 available on SEDAR at http://www.sedar.com.
Forward-looking statements are based on estimates and opinions of management of the Company at the time the statements are presented. The Company may, as considered necessary in the circumstances, update or revise such forward-looking statements, whether as a result of new information, future events or otherwise, but the Company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable securities laws.