CORP. SERV 10 LISTED / Fracmaster Comments on Share Price Weakness
FRACMASTER COMMENTS ON RECENT STOCK PRICE
CALGARY, June 2 /CNW/ - At the request of the Toronto Stock Exchange and
the Montreal Exchange, the Company has been asked to issue a press release
commenting on the recent weakness of its listed securities.
The Company is not aware of any underlying circumstances unique to
Fracmaster that would cause the recent price weakness.
Traditionally, the Company's second quarter results reflect weaker
revenues and earnings due to spring break-up conditions in Canada. This,
combined with the continuing low world crude oil price environment, will
further impair the Company's second quarter performance.
After the second quarter, Fracmaster expects to see a continued shift
among its customers in North America to gas-related activity from oil-related
activity. This shift should have a positive impact on oilfield services
provided by Fracmaster for the balance of 1998.
Looking forward to 1999, further improvements are anticipated from the
full impact of recent acquisitions in the United States and higher gas-related
activity in North America. As well, the Company expects to enjoy the benefits
of a full year of operations from its China project in 1999.
In Russia, the Company will continue to focus on fee-for-service
activities. Fracmaster is well positioned to profit from positive changes in
the Russian oil industry. Fee-for-service work is expected to create new
opportunities both for fracturing and expansion into new services in Russia.
The Company has in place two Normal Course Issuer Bids; one for its
common shares and the second for instalment receipts representing common
shares. Fracmaster believes its securities have been trading in a price range
that does not reflect their value in relation to the Company's prospects.
Fracmaster Ltd. is an international oil and gas service and production
company which is listed on the New York Stock Exchange, the Toronto Stock
Exchange and the Montreal Exchange, and trades under the symbol ''FMA''. For
further information on the Company, please visit our website at
fracmaster.com.
This press release contains forward-looking statements that are subject
to risk factors associated with the oil and gas business. Fracmaster believes
that the expectations reflected in this release are reasonable, but results
may be affected by a variety of variables including, but not limited to, price
fluctuations, currency fluctuations, drilling and production results of our
customers and partners, industry competition, environmental risks, political
risks and capital restrictions.
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For further information: Les J. Margetak, President and Chief Executive
Officer or Gary T. Sherkey, Senior Vice President, Finance & Administration,
Chief Financial Officer, Fracmaster Ltd., (403) 262-2222, Fax: (403) 266-0505
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