Estrella International Energy Services Ltd. Announces Filing of 2012 Annual Statements

NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRES

Estrella International Energy Services Ltd. ("Estrella" or the "Company") (TSX
VENTURE:EEN) announces that it has filed its Audited Consolidated Financial
Statements and the related Management's Discussion and Analysis ("MD&A") for the
year-ended December 31, 2012. Copies of these documents can be found on the
SEDAR website at www.sedar.com.


Warren Levy, the Company's President and CEO commented, "2012 was a challenging
year for the Company. Consolidation of our acquisitions in Colombia, and the
redeployment of the fleet onto long term contracts has taken longer than we had
hoped. We have made major strides during the year in Colombia, and around the
region, and we now have 9 of our 19 rigs on long term contracts, and an
additional 3 on shorter contracts. During the year, we have stabilized the
balance sheet and worked hard to place the Company on a stable footing for the
years to come. This is being achieved through reduction in debt levels, focusing
on long term contracts, operational and safety excellence and the focus on
growth in our directional alliance with Scientific Drilling. 2013 looks to be a
much stronger year for the Company. 


Highlights for the year include a fundamental improvement in safety and
operational integrity statistics. Positioning four of five rigs in Argentina on
multiyear contracts is a key improvement. In addition to shutting down a legacy
money losing business in southern Argentina. Entering the high profile "Vaca
Muerta" shale gas operations with YPF has repositioned the operations and
profitability of the Company in that country. Completing major upgrades of a
number of rigs in Colombia during 2012, including our 1000 HP drilling rig
(#1002) is also important to our long term profitability." 


Financial Highlights for the Year ended December 31, 2012 (all dollar amounts
are US$ '000)


For the year ended December 31, 2012, Estrella's revenue increased by 7% to
$62,654 ($58,785 in 2011). This increase in revenues was primarily driven by
revenue growth from the Consulting and Directional Drilling Services business
which was offset by a small decrease in revenues from the Drilling business
based on lower rig utilization 


Rig utilization for the year was lower than expected. In January 2012, a region
wide strike in the Barrancabermeja area of Colombia affected the operations of
the Company (see Company's press release dated January 16, 2012). After the
strike ended Estrella was left with 6 rigs idle that had been continuously
working prior to the strike and received 3 additional rigs from Petroland of
which two were also idle after the strike. The redeployment of these rigs after
the strike is taking longer than expected. Additionally there was lower
utilization of rig 1201 and rig 1001 due to the mobilization to Argentina and
which had a corresponding effect on the revenues. 


The revenue growth was offset by oilfield expenses of $57,606 ($46,739 in 2011),
general and administrative expenses of $11,708 ($14,062 in 2011) and interest
expenses of $8,961 ($6,798 in 2011). In addition, the Company realized non-cash
expenses totalling $16,041; these include depreciation of $13,359, a goodwill
impairment of $2,682. As a result of the forgoing, the Company recorded a net
loss for the year of $28,997 or ($0.1453) per common share.


The increase in oilfield services expenses year over year and on a quarterly
basis is principally driven by expenses attributable to the integrated remote
project assigned to rig 552, the full year 2012 operation in Bolivia, the start
of directional drilling in Argentina and also the start of operation of rig 1201
in Argentina.


Rights Offering Update

On April 22, 2013, the Company filed a final long form prospectus ("Prospectus")
with the securities commissions in the provinces of British Columbia, Alberta
and Ontario, which qualified the distribution of rights ("Rights") to the
shareholders of the Company ("Rights Offering"). The Rights are exercisable into
500,000,000 common shares at a subscription price CDN$0.05 per share for
aggregate gross proceeds of up to CDN$25,000,000 to the Company. In connection
with the Rights Offering, Ringo Holding L.P., the controlling shareholder of the
Company, has agreed to exercise its pro-rata share of the Rights issued to it to
ensure that the Company raises minimum gross proceeds of CDN$13,913,000. Ringo
Holding may additionally exercise the Additional Subscription Privilege (as
defined in the Prospectus). The expiry date of the Rights Offering is June 8,
2013.


About Estrella

Estrella is an oil and natural gas, geothermal and mining service company with
operations throughout Latin America. It provides conventional drilling services;
directional drilling services; tools and equipment sales and rentals; work-over
services; and consulting and engineering services. The Corporation is
headquartered in Buenos Aires, Argentina and has operating locations in six
countries Latin and South America.


Forward Looking Statements

This press release may contain forward-looking statements which reflect
management's expectations regarding future growth, results of operations,
performance and business prospects of Estrella. These forward-looking statements
may relate to, among other things, forecasts or expectations regarding business
outlook for Estrella; commodity prices for oil and natural gas; oil and natural
gas demand and production growth; debt service requirements for Estrella;
improvements in operating procedures and technology; capital expenditures by
Estrella and the oil and gas industry; the business strategies of Estella's
customers; future global economic conditions; and future results of operations;
expectations regarding the Corporation's ability to raise capital; realization
of the anticipated benefits of acquisitions and dispositions, revenue growth,
future acquisitions, generation of cash flow, and may also include other
statements that are predictive in nature, or that depend upon or refer to future
events or conditions, and can generally be identified by words such as "may",
"will", "expects", "anticipates", "intends", "plans", "believes", "estimates",
"guidance" or similar expressions. In addition, any statements that refer to
expectations, projections or other characterizations of future events or
circumstances are forward-looking statements. These statements are not
historical facts or guarantees of future performance, but instead represent
management's current expectations, estimates and projections regarding future
events. 


The reader is cautioned that assumptions used in the preparation of any
forward-looking information may prove to be incorrect. Events or circumstances,
such as future availability of capital on favourable terms, may cause actual
results to differ materially from those predicted, as a result of numerous known
and unknown risks, uncertainties, and other factors, many of which are beyond
the control of Estrella. The reader is cautioned not to place undue reliance on
any forward-looking information. Such information, although considered
reasonable by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated. Forward-looking
statements contained in this press release are expressly qualified by this
cautionary statement. The forward-looking statements contained in this press
release are made as of the date of this press release, and Estrella does not
undertake any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by securities law.


THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR
DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES,
AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO SELL
ANY OF THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES
HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR
SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT
THEREFROM.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Estrella International Energy Services Ltd.
Warren Levy
Chief Executive Officer
[phone]


Estrella International Energy Services Ltd.
Javier Vedoya
Chief Financial Officer
[phone]
[phone] (FAX)
[e-mail]
www.estrellasp.com