Global Energy Services Ltd. releases second quarter financials

Monday, August 25, 2008 2:19 PM

TSX-V: "GLK"
Shares Outstanding 20,535,959

CALGARY, Aug. 25 /CNW/ - Global Energy Services Ltd. ("Global Energy") (GLK - TSX Venture), announces the Board of Directors have approved the release of the June 30, 2008 financial reports.

Financial highlights to June 30, 2008
-   Our production services segment had a second quarter income of
    $31,158; cost recoveries of $50,824 were reported in the corporate
    segment; which was offset by a loss of $405,133 in the communications
    division. This resulted in an overall net loss of $323,151 for the
    quarter ended June 30, 2008.
-   On a six month basis, revenues in the communications segment have
    declined by 43 percent over the comparable period in 2007. Expenses
    of this segment have been reduced by a similar percentage, which
    allows for a return to profitable operations as drilling activity
    levels recover.
-   On a six month basis, revenues in the production services segment
    have increased by 27 percent over the comparable period in 2007. With
    the slow down in drilling activity, new opportunities are surfacing
    for optimizing production from existing wells using the Company's
    pumping technology. The revenue would have been much stronger if not
    for weather delays in second quarter. Based on current market demand
    and recently announced pump order, we expect to have a very strong
    third and fourth quarter for production services.
-   The Company's working capital surplus at June 30, 2008 was
    $1,873,093. All the costs associated with the 2006/07 proposed
    acquisitions have been discharged or otherwise reflected in the
    working capital surplus number. As a result, funds from operations
    and available credit facilities should support continued growth in
    the production services segment in 2008.

"Despite the second quarter being the traditional weak quarter, our overall financial picture is improving and we have an adequate financial foundation to capture the opportunities ahead," said Derek Begin, President and CEO of Global Energy Services. "Our pumping solution is well positioned in the North American market as we continue to prove its ability to work in an ever increasing variety of oil and gas fields and basins. The fall drilling season is shaping up to be busier and we anticipate significantly better utilization rates on our communications equipment."

About Global Energy Services Ltd.

Global Energy Services Ltd. is an innovative oilfield service company that provides production services and communications solutions to the oil and gas industry. The production services segment utilizes its patented Activator hydraulic submersible pump to enhance gas production in conventional gas and coalbed methane wells. Global's communications segment provides a complete suite of integrated products and solutions specifically suited for the oil and gas industry. Global was founded in 1994 and is listed on the TSX-V.

More information about Global Energy Services Ltd. can be found at http://www.global-energy.ca

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(Source: CNW )

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