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Press release from CNW Group

Dalmac Energy Provides Corporate Update for Q4 and Year Ahead

Thursday, June 20, 2013

Dalmac Energy Provides Corporate Update for Q4 and Year Ahead

08:17 EDT Thursday, June 20, 2013

TSX Venture: "DAL"

EDMONTON, June 20, 2013 /CNW/ - John Babic, President and CEO of Dalmac Energy Inc. ("Dalmac") (TSX Venture "DAL") is pleased to report that the Company has exceeded its previous revenue guidance of $40 million for fiscal 2013 ended April 30, 2013.  While allowing for the fact that seasonal revenues have the potential to be impacted by forces outside the Company's control such as spring break-up and inclement weather, Dalmac still managed to finish the fiscal year with revenues of approximately $41 million, a 16% increase from the previous fiscal year, as a result of continued strong demand, new contracts, a stable recurring revenue base, and the deployment of new equipment in the fourth quarter.  Full financial results are expected to be released in or before August 2013.

As reported in Q3, the Company recently underwent a significant overhaul of its equipment inventory to meet more stringent operating parameters from increasing demand.  This led to higher costs in Q3 and Q4.  As previously announced, the new credit facility is expected to improve the Company's weighted average cost of capital by approximately 2.5% on an annual basis.

In conjunction with increasing our rack rates by approximately 10%, management has also recently revamped its run time logistics to maximise yield and reduce dead head costs. The Company is also revamping its policies which are designed to improve employee retention and thereby stave off spiraling labour training costs. It is expected that the combined effect of the above developments will lead to increased revenues, lower costs while yielding higher profit margins on a going forward basis.

Furthermore Dalmac has recently entered into new service agreements for the provision of additional service work to handle the production flow stemming from increased directional drilling and fracking technologies. In summary this translates to more demand for fluid transfer services and that bodes well for growing revenue on a going forward basis.

Dalmac expects to be profitable in Q4 and is confident that the Company is well positioned to transition into a record fiscal 2014. Our continued focus on customer relationships is proving successful as we have become first call with many of our key customers.  Dalmac is expecting higher than normal utilization rates and with the recently completed $6.5M investment in new equipment is forecasting revenues to exceed $45 million in fiscal 2014.  With improving commodity prices, industry activity levels are expected to remain strong over the next several years and Dalmac is well positioned to capitalize on this strong demand with solid increases on both its top and bottom line. 

Statements throughout this report that are not historical facts may be considered 'forward looking statements'.  Such statements are based on current expectations that involve risks and uncertainties, which could cause actual results to differ from those anticipated.  Important factors that can cause anticipated outcomes to differ materially from actual outcomes include the impact of general economic conditions, industry conditions, competition from other industry participants, volatility of petroleum prices, the ability to attract and retain qualified personnel, changes in laws or regulation, currency fluctuations, continued ability to access capital from available facilities and environmental risks.  References to "Dalmac', the "Corporation", "Company", "us", "we", and "our" mean Dalmac Energy Inc. and its subsidiary Dalmac Oilfield Services Inc.  The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.  We seek safe harbor.

SOURCE: Dalmac Energy Inc.

For further information:

Doren Quinton, President
QIS Capital Corp. Ph:  (250) 377-1182
Email:  info@smallcaps.ca
www.smallcaps.ca

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