Operations - Estrella International Energy Services Ltd.

4
Message from the Chairman & CEO
Estrella was founded in 2005, initially operating in Argentina. In the last seven years
we have grown the business to operate in Chile, Peru, Bolivia and Colombia and listed
the company on the Toronto Stock Venture Exchange. Today we operate a fleet of
nineteen drilling and workover rigs, directional drilling equipment and provide
engineering and consulting services to operators around the region.
This growth has not come without its challenges. Our strategy to grow our footprint
in Colombia via the acquisition of three local companies took much more time, energy
and costs than we had originally hoped. We now have the acquisitions completed and
have made good advances in consolidating our operations in Colombia.
Whilewehavemanagedtogrowthetoplinerevenuesofthebusinesseveryyear,
even in 2008‐2009, financial results have not followed as quickly. Major challenges
interrupted our operations in Chile, Bolivia and Colombia late in 2011.
We are committed to improving our the cost of running our businesses and made
major strides in the first quarter of this year with a reduction of over $600,000 in
SG&A costs from the previous quarter. Growth in our consulting and directional
businesses and improved utilization in Colombia will help drive growth again in 2012.
We also have repaid over $8.5 million of our $32 million senior debt facility in the last
six months. Collectively these efforts are helping to strengthen the balance sheet of
the Company.
Estrella is committed to “Ser mejor, hacer mas” (Be better, do more) and will
continue to strive to set the standard of excellence by which all other service
companies in Latin America are measured
Warren Levy
Chairman & CEO