CALGARY, March 18 /CNW/ - Earnings for the year ended December 31, 2008
were $14,847,000 or $0.81 per share on revenue of $137,246,000. Comparative
figures for 2007 were $20,752,000 or $1.14 per share on revenue of
$141,962,000. Funds flow from continuing operations for the current year was
$34,149,000 as compared to $37,143,000 in 2007.
    The Company's rig utilization in 2008 was 42.2% compared to the industry
average of 41.7% and AKITA's utilization of 40.9% in 2007. This weak industry
wide level of rig utilization dramatically influences the Company's ability to
obtain premium pricing for its services. Consequently, AKITA turned some of
its attention to new opportunities as a means of optimizing its strong asset
base. Early in the year, one rig was deployed from Alaska to Colorado,
representing the first time AKITA moved a rig south of Canada. The Company is
also performing drilling services for customers having a focus on potash
rather than AKITA's traditional oil and natural gas markets.
    During the year, the Company took several steps to strengthen its overall
fleet. In the first quarter, one 2,000 metre double rig was retired. AKITA
disposed of one of its 5,000 metre triple rigs in the second quarter as well
as its well servicing business. These reductions related to underperforming
assets. During the third quarter, AKITA entered into a multi-year contract
with a major customer and spent the balance of the year upgrading two of its
rigs in order to fulfil this obligation. In the fourth quarter, a new 3,200
metre double rig was completed at a cost of $7.3 million.
    In addition to operational strength, the Company maintains significant
financial strength, which has placed the Company in a strong position to
weather the current market conditions. At December 31, 2008 the Company had
$63.1 Million in working capital ($3.46 per share) including $42.2 Million in
cash ($2.31 per share) and no long-term debt. As well, the carrying value for
the Company's fleet was only $146.9 Million ($3.9 Million per rig). Although
the evaluation of replacement cost for AKITA's fleet has not been performed,
management is confident that the cost to replace the Company's fleet is
significantly higher than its carrying value.
    Management does not anticipate a significant improvement in market
conditions for its rigs until the prices of world crude oil and North American
natural gas are sustained at higher levels. Nevertheless, the oil and gas well
drilling industry is highly cyclical and, as demonstrated in 2008, higher oil
and gas prices could re-emerge at some point in the future. AKITA continues to
be very well positioned, having highly trained and dedicated personnel
operating first-class equipment. Moreover, the Company's conservative cash
management strategy has ensured that the high quality of service that our
customers have received in the past does not have to be compromised.
    Selected financial information for the Company is as follows:-------------------------------------------------------------------------
    Consolidated Balance Sheets
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    December 31 ($000's of Canadian Dollars)              2008          2007
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    Assets
    Current assets
      Cash and cash equivalents                       $ 42,168      $ 43,166
      Accounts receivable                               41,534        22,505
      Other                                              1,123           272
                                                   --------------------------
                                                        84,825        65,943

    Restricted cash                                      5,000         5,000
    Capital assets                                     153,044       152,579
                                                   --------------------------

                                                      $242,869      $223,522
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    Liabilities
    Current liabilities
      Accounts payable and accrued liabilities        $ 20,061      $ 13,051
      Dividends payable                                  1,276         1,279
      Income taxes payable                                 399           873
      Deferred revenue                                       -         1,617
                                                   --------------------------
                                                        21,736        16,820
    Future income taxes                                 18,818        15,055
    Pension liability                                    3,854         3,609


    Class A and Class B Shareholders' Equity
    Class A and Class B shares                          23,312        23,369
    Contributed surplus                                  2,271         1,110
    Retained earnings                                  172,878       163,559
                                                   --------------------------
                                                       198,461       188,038
                                                   --------------------------

                                                      $242,869      $223,522
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    Consolidated Statements of Earnings,
    Comprehensive Income and Retained Earnings
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    Year ended December 31 ($000's of Canadian
     Dollars, except per share amounts)                   2008          2007
    -------------------------------------------------------------------------

    Revenue                                           $137,246      $141,962
                                                   --------------------------
    Costs and expenses
      Operating and maintenance                         87,123        84,185
      Depreciation                                      16,667        15,164
      Selling and administrative                        16,336        15,426
                                                   --------------------------
                                                       120,126       114,775
                                                   --------------------------
    Revenue less costs and expenses                     17,120        27,187
                                                   --------------------------
    Other income (expense)
      Interest income                                    1,814         1,392
      Gain on sale of joint venture interests in
       rigs and other assets                               673           902
      Gain (loss) on foreign currency translation          526          (814)
                                                   --------------------------
                                                         3,013         1,480
                                                   --------------------------
    Earnings before income taxes                        20,133        28,667
                                                   --------------------------
    Income taxes
      Current                                            3,384         6,486
      Future                                             3,763         1,039
                                                   --------------------------
                                                         7,147         7,525
                                                   --------------------------
    Earnings from continuing operations                 12,986        21,142

    Gain on disposal from discontinued operations,
     net of tax                                          1,941             -
    Discontinued operations, net of tax                    (80)         (390)
                                                   --------------------------

    Net earnings and comprehensive income               14,847        20,752

    Retained earnings, beginning of year               163,559       148,781
    Dividends declared                                  (5,111)       (5,117)
    Adjustment on repurchase and
     cancellation of share capital                        (417)         (857)

                                                   --------------------------
    Retained earnings, end of year                    $172,878      $163,559
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    Earnings per Class A and Class B share from
    continuing operations
      Basic                                           $   0.71      $   1.16
      Diluted                                         $   0.71      $   1.15

    Earnings per Class A and Class B share
      Basic                                           $   0.81      $   1.14
      Diluted                                         $   0.81      $   1.13
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    Consolidated Statements of Cash Flows
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    Year ended December 31 ($000's of Canadian
     Dollars)                                             2008          2007
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    Operating activities
    Net earnings                                      $ 12,986      $ 21,142
    Non-cash items included in earnings
      Depreciation                                      16,667        15,164
      Future income taxes                                3,763         1,039
      Expense for defined benefit pension plan             245           242
      Stock options charged to expense                   1,161           458
      Gain on sale of joint venture interests in
       rigs and other assets                              (673)         (902)
                                                   --------------------------
    Funds flow from continuing operations               34,149        37,143
    Cash provided from (to) discontinued operations         24          (151)
    Change in non-cash working capital                 (14,806)        1,884
                                                   --------------------------
                                                        19,367        38,876
                                                   --------------------------
    Investing activities
    Capital expenditures                               (19,567)      (40,948)
    Proceeds on sales of joint venture interests
     in rigs and other assets                            1,435         7,443
    Proceeds on sales of discontinued assets             3,510             -
    Cash restricted for loan guarantees                      -        (5,000)
    Change in non-cash working capital                    (158)       (1,081)
                                                   --------------------------
                                                       (14,780)      (39,586)
                                                   --------------------------
    Financing activities
    Dividends paid                                      (5,111)       (5,117)
    Repurchase of share capital                           (474)         (928)
    Change in non-cash working capital                       -            (6)
                                                   --------------------------
                                                        (5,585)       (6,051)
                                                   --------------------------
    Decrease in cash                                      (998)       (6,761)
    Cash position, beginning of year                    43,166        49,927
                                                   --------------------------
    Cash position, end of year                        $ 42,168      $ 43,166
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    Interest paid during the year                     $     48      $    376
    Income taxes paid during the year                 $  4,377      $ 11,400
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    -------------------------------------------------------------------------FORWARD-LOOKING STATEMENTS

    From time to time Akita Drilling Ltd. ("AKITA" or the "Company") makes
written and verbal forward-looking statements. These forward-looking
statements include but are not limited to comments with respect to our
objectives and strategies, financial condition, the results of our operations
and business, our outlook for industry and our risk management discussion.
Forward looking statements are typically identified with words such as
"believe", "expect", "forecast", "anticipate", "intend", "estimate", "plan"
and "project" and similar expressions of future or conditional events such as
"will", "may", "should", "could" or "would".
    By their nature these forward-looking statements involve numerous
assumptions, inherent risks and uncertainties, both general and specific, and
the risk that predictions and other forward-looking statements will not be
achieved. We caution readers of this News Release not to place undue reliance
on these forward-looking statements as a number of important factors could
cause actual future results to differ materially from the plans, objectives,
expectations, estimates and intentions expressed in such forward-looking
statements.
    Forward-looking statements may be influenced by the following factors:
the level of exploration and development activity carried on by AKITA's
customers, world oil and North American natural gas prices, weather, access to
capital markets and government policies. We caution that the foregoing list of
important factors is not exhaustive and that when relying on forward-looking
statements to make decisions with respect to AKITA, investors and others
should carefully consider the foregoing factors as well as other uncertainties
and events.