Wenzel Announces Decision in Arbitration with Dreco Energy

Wenzel Announces Decision in Arbitration with Dreco Energy Services
ULC and Vector Oil Tools ULC 
CALGARY, ALBERTA -- (Marketwire) -- 12/04/12 -- Wenzel Downhole Tools
Ltd. (the "Company") (TSX:WZL) announces that on Monday December 3,
2012, it received the final award (the "Award") in the matter of
arbitration with Dreco Energy Services ULC ("Dreco") and Vector Oil
Tools ULC ("Vector"). 
Regarding Dreco's and Vector's claim, the arbitrator awarded Dreco
and Vector approximately $14.676 million in damages, plus
pre-judgment interest in an amount to be re-calculated by an
accountant. Based on past calculations the Company does not expect
the amount of such pre- judgment interest to exceed $1.3 million. 
The arbitrator dismissed the Company's counterclaim against Dreco and
Vector, which claimed damages for abuse of process and interference
with business relations. 
The arbitrator has yet to decide on the issue of costs, and the
Company may be responsible for a portion of Dreco's and Vector's
costs. 
Under the relevant provisions of the arbitration agreement among
Dreco, Vector and the Company, the parties have until January 2,
2013, to appeal the Award. The Company is consulting with its legal
advisors regarding an appeal. 
While the Company is disappointed by the contents of the Award, the
Company believes the issuance of the Award is yet another important
step towards resolving the legal issues relating to events of over a
decade ago. 
Notwithstanding legal actions and claims, and related challenges,
over the past ten years, the Company has consistently served its
customers by providing what it believes to be downhole drilling tools
of the highest quality combined with industry-leading service. 
This remains the focus of the Company's management team and
employees, and as a result both customers and shareholders can
continue to expect that same dedication to quality and service. 
Finally, with respect to liquidity and capital resources, the Company
believes it is worth noting that in the Press Release, Condensed
Consolidated Financial Statements and Management's Discussion &
Analysis as filed on November 9, 2012, it was reported that its
balances of short- term and long-term financial debt as of September
30, 2012, in the aggregate amounted to $2.774 mi
llion. 
In short, the Company does not anticipate any issues concerning its
liquidity and capital resources. 
About Wenzel Downhole Tools Ltd. 
The Company is a designer, manufacturer, seller and renter of
drilling tools used in oil and gas exploration, that operates in
Canada, the United States and internationally; its shares trade on
the Toronto Stock Exchange under the symbol "WZL". 
The Company's Canadian sales, manufacturing and servicing facilities
are located in Edmonton, Alberta and its US servicing facilities are
located in Conroe, Texas; Morgantown, West Virginia; and Casper,
Wyoming. It also has a sales and service facility in Celle, Germany. 
The main corporate office is located in Calgary, Alberta. 
Forward Looking Statements 
Certain statements contained in this press release constitute
"forward-looking statements". These statements are based on current
beliefs and assumptions of management, however are subject to known
and unknown risks, uncertainties and other factors that may cause
actual results to differ materially from the forward-looking
statements in this press release. Although the Company believes that
the expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be
placed on the forward-looking statements because the Company can give
no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their
very nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated due
to a number of factors and risks. For additional information with
respect to certain of these beliefs, assumptions, risks and
uncertainties, please refer to The Company's Annual Information Form
for fiscal 2011 available on SEDAR at http://www.sedar.com. 
Forward-looking statements are based on estimates and opinions of
management of the Company at the time the statements are presented.
The Company may, as considered necessary in the circumstances, update
or revise such forward-looking statements, whether as a result of new
information, future events or otherwise, but the Company undertakes
no obligation to update or revise any forward-looking statements,
except as required by applicable securities laws. 
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY AND ACCURACY OF THIS NEWS RELEASE. 
Contacts:
Wenzel Downhole Tools Ltd.
Ron Patterson
Chief Executive Officer
(403) 262-3050
(403) 265-8154 (FAX)