John Babic, President and CEO of Dalmac Energy Inc. is pleased to provide a shareholder update.
The oil and gas industry in Canada is facing significant challenges due to falling oil prices. Production companies are beginning to take steps to limit capital expenditures by reducing or suspending drilling programs and by eliminating all unnecessary expenses. This is having a profound impact on cash flow throughout the industry for both producers and service companies. Dalmac is pleased to report that it has been proactively successful to-date in maintaining its revenue base, profit margins, and activity levels.
Current activity levels within the Western Canadian Sedimentary basin vary dramatically based largely upon location, the spectrum of hydrocarbons, decline rates, and cost of drilling.