THE CANADIAN PRESS

Stumble Upon

del.icio.us

Digg

Facebook

Print

Email

Speak Up

CALGARY - Leader Energy Services Ltd. (TSXV:LEA) felt the brunt of a harsh oil and gas market, but the company was able to narrow its third-quarter losses due to a reduction in interest and amortization charges from their year-ago levels.

The company, which provides well stimulation services, reported a net loss of $791,000 in the quarter ended Sept. 30. That compared to a year-ago net loss of $1.2 million.

Revenues totalled $1.8 million, down from $4.5 million last year.

The Calgary-based company said lower activity levels in a sluggish market had a significant negative impact on revenues. These were partially offset by cost savings in the general and administrative area.

Leader Energy also saw its net loss narrowed from year-ago levels due to third quarter interest charges and amortization declining from the previous year with the sale of U.S. assets and the pay down of a credit facility in June 2008.

Although its third quarter revenues were lower than forecast, the company said it was seeing the first signs of industry stabilization with a strengthening oil and gas market. Leader Energy said it expects its customers to raise sufficient capital to spend on oilfield services in coming quarters.

Its shares closed at 13 cents Thursday on the TSX Venture Exchange.