Mr. Carlos Valencia reports

ESTRELLA INTERNATIONAL ENERGY SERVICES LTD. ANNOUNCES FILING OF Q2 FINANCIAL STATEMENTS

Estrella International Energy Services Ltd., on Aug. 29, 2014, filed its interim condensed consolidated financial statements, and the related management's discussion and analysis (MD&A), for the three- and six-month period ended June 30, 2014. Copies of these documents can be found on SEDAR. In this news release, except for share amounts, all dollar amounts are in thousands of U.S. dollars, unless otherwise specified.

During the quarter ended June 30, 2014, the Argentine rig market remained stable, with the company's entire Argentine rig fleet (six rigs) operating on multiyear contracts. The company placed additional rigs to work in the La Cira region of Colombia, where six workover rigs began a contract for Occidental Petroleum. The company finished the second quarter of 2014 with 55-per-cent average rig utilization. The company currently has 27 of 45 rigs on contracts.

The company continues to show significant progress in the Argentine market with its directional drilling alliance with Scientific Drilling International, recording its highest-ever quarterly revenue of $2,619. The company is currently increasing its investment in the Argentine market by bringing new sets of directional drilling tools that will allow it to expand its market position. The company remains committed to the health and safety of its employees, and finished the second quarter of 2014, with only one lost-time accident.

Selected financial information for the quarter ended June 30, 2014

During the quarter ended June 30, 2014, the company recorded total revenues of $61,760 ($18,717 in 2013). The revenue for the quarter ended June 30, 2014, was offset by general and administrative expenses of $4,087 ($2,892 in 2013), depreciation of $9,275 ($3,142 in 2013), interest expense of $2,115 ($1,932 in 2013) and oil field expenses of $55,912 ($15,870 in 2013). For the quarter ended June 30, 2014, the company recorded other (income) and expense of $89 (minus $523 during 2013). EBITDA (earnings before interest, taxes, depreciation and amortization) of the quarter ended June 30, 2014, was $1,761 (minus $45 in 2013). This represents the fourth consecutive quarter that the company has reported positive EBITDA.

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