Precision Drilling Corporation Announces Eight Additional New Build Contracts and Update on Capital Expenditures
05 Oktober 2011 - 12:00PM
Marketwired
Precision Drilling Corporation ("Precision") announced today the
signing of eight new build drilling rig contracts. With this
announcement, Precision has increased its 2011 new build rig
program to 38 rigs. These eight rigs are expected to consist of
four Super Single rigs for the Canadian market and four Super
Triple 1200 rigs for the U.S. market.
Of the total 38 rigs in the 2011 program, Precision expects to
deliver 18 in 2011 and the remaining 20 in 2012. Precision has
committed to 47 new build rigs since the beginning of 2010 and has
signed long-term contracts for all of the rigs.
Precision now estimates that capital expenditures for 2011 will
total $880 million. To complete the 2011 new build rig program and
rig upgrades, Precision expects there will also be an additional
$303 million of carry forward capital expenditures in 2012. The
total 2011 capital expenditure plan includes $144 million for
sustaining and infrastructure expenditures and is based upon
currently anticipated activity levels for the year. Additionally,
$508 million is slated for expansion capital for the 2010 and 2011
new build rig programs. The total capital expenditures also include
the cost to upgrade approximately 20 rigs and to purchase long lead
time items for future new build rigs or upgrades at an anticipated
cost of $228 million. Precision expects the 2011 capital
expenditures of $880 million will be split $790 million for the
Contract Drilling segment and $90 million for the Completion and
Production Services segment.
Kevin Neveu, President and Chief Executive Officer stated,
"Precision's Super Series rigs continue to generate a high level of
customer interest despite the persistent global economic concerns.
I am particularly pleased by the rapid market acceptance of our new
Super Triple ST-1200 rig which is already proving more successful
than we expected. Currently Precision has new build contracts for
seven additional ST-1200 rigs following our first deployment in
July of this year. The mobility and operating efficiency
demonstrated by our Super Series rigs address the key challenges
our customers face developing unconventional oil and gas
reserves."
Cautionary Statement Regarding Forward-Looking Information and
Statements
Certain statements contained in this report, including
statements that contain words such as "anticipate", "estimate",
"plan", "expect", "will" and similar expressions and statements
relating to matters that are not historical facts constitute
"forward-looking information" within the meaning of applicable
Canadian securities legislation and "forward-looking statements"
within the meaning of the "safe harbor" provisions of the United
States Private Securities Litigation Reform Act of 1995
(collectively, "forward-looking information and statements").
In particular, forward-looking information and statements
include, but are not limited to: the number and type of rigs to be
built; the timing and destination for the deployment of new build
rigs; Precision's level of capital expenditures and anticipated
uses of capital; the timing of such expenditures; and the
anticipated cost of upgrading rigs and purchasing long lead time
items for future new build rigs or rig upgrades.
These forward-looking information and statements are based on
certain assumptions and analysis made by Precision in light of its
experience and its perception of historical trends, current
conditions and expected future developments as well as other
factors it believes are appropriate in the circumstances. However,
whether actual results, performance or achievements will conform to
Precision's expectations and predictions is subject to a number of
known and unknown risks and uncertainties which could cause actual
results to differ materially from Precision's expectations. Such
risks and uncertainties include, but are not limited to:
fluctuations in the price and demand for oil and natural gas;
fluctuations in the level of oil and natural gas exploration and
development activities; general economic, market or business
conditions; and other unforeseen conditions which could impact the
use of services supplied by Precision.
Consequently, all of the forward-looking information and
statements made in this report are qualified by these cautionary
statements and there can be no assurance that the actual results or
developments anticipated by Precision will be realized or, even if
substantially realized, that they will have the expected
consequences to, or effects on, Precision or its business or
operations. Readers are therefore cautioned not to place undue
reliance on such forward-looking information and statements. Except
as may be required by law, Precision assumes no obligation to
update publicly any such forward-looking information and
statements, whether as a result of new information, future events
or otherwise.
About Precision
Precision is a leading provider of safe and High Performance,
High Value services to the North American oil and gas industry.
Precision provides customers with access to an extensive fleet of
contract drilling rigs, service rigs, directional drilling
services, camps, snubbing units, water treatment units and rental
equipment backed by a comprehensive mix of technical support
services and skilled, experienced personnel.
Precision is headquartered in Calgary, Alberta, Canada.
Precision is listed on the Toronto Stock Exchange under the trading
symbol "PD" and on the New York Stock Exchange under the trading
symbol "PDS".
Contacts: Precision Drilling Corporation Carey Ford Vice
President, Finance and Investor Relations 403.716.4575 403.716.4755
(FAX) Precision Drilling Corporation 800, 525 - 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1www.precisiondrilling.com
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