TSX: SHLE
CALGARY, Jan. 19, 2018 /CNW/ - Source Energy Services Ltd.
("Source" or the "Company") is pleased to announce that it has
filed with the applicable Canadian securities regulatory
authorities updated National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101") technical reports
for each of its three mineral projects in Wisconsin, United
States (collectively, the "Technical Reports").
The Technical Reports have each been prepared with an effective
date of December 31, 2017 and updated
to include certain information regarding the mining methods, mining
operations, engineering and planning, recovery methods, project
infrastructure, market studies and contracts, environmental
studies, permitting and social or community impact, capital and
operating costs and economic analysis for each mineral project.
The mineral resources estimates from the Company's previous
technical reports remain current and are unchanged in the Technical
Reports. The Sumner Mine has approximately 94.1 million metric
tonnes of Inferred Mineral Resources according to the Sumner
Report, the Blair Mine has approximately 25.0 million metric tonnes
of Inferred Mineral Resources according to the Blair Report and the
Preston Mine has approximately 32.3 million metric tonnes of
Inferred Mineral Resources according to the Preston Report. See
"Scientific and Technical Information".
ABOUT SOURCE ENERGY SERVICES
Source is a fully integrated producer, supplier and distributer
of high quality Northern White frac sand primarily to the WCSB.
Source provides its customers with a full end-to-end solution
through its Wisconsin mine,
processing facilities, rail assets, strategically located terminal
network and "last mile" logistics operations. In addition, Source
provides storage and logistics services for other bulk oil and gas
well completion materials that are not produced by Source. Source's
full service approach allows customers to rely on its logistics
capabilities to increase reliability of supply and to ensure the
timely delivery of their growing requirements for frac sand and
other bulk completion materials.
SCIENTIFIC AND TECHNICAL INFORMATION
Further details with respect to the scientific and technical
information contained in this press release are available in the
Technical Reports, which are available under the Company's SEDAR
profile at www.sedar.com, titled as follows: (i) the "Technical
Report, Indicated and Inferred Resource Estimates for Source Energy
Services Ltd.'s Sumner Silica Sand Mine and Property in
Wisconsin, United States", dated effective December 31, 2017, prepared by APEX Geoscience
Ltd. ("APEX") and John T. Boyd Company ("BOYD") and authored by
Roy Eccles, M. Sc., P. Geol.,
Steven Nicholls, BA.Sc, MAIG and
Rachelle Hough, B.Sc., P. Geo. each
of APEX and Robert J. Farmer, B.
Sc., P. Eng. of BOYD (the "Sumner
Report"); (ii) "Technical Report, Inferred Resource Estimate for
Source Energy Services Ltd.'s Blair Silica Sand Mine and Property
in Wisconsin, United States", dated effective December 31, 2017, prepared by APEX and
BOYD and authored by Roy Eccles, M. Sc., P. Geol., Steven Nicholls, BA.Sc, MAIG and Rachelle Hough, B.Sc., P. Geo. each of APEX and
Robert J. Farmer, B. Sc., P. Eng. of
BOYD (the "Blair Report"); and
(iii) "Technical Report, Indicated and Inferred Resource Estimates
for Source Energy Services Ltd.'s Preston Silica Sand Mine and
Property, Wisconsin, United States", dated effective December 31, 2017, prepared by APEX and
BOYD and authored by Roy Eccles, M. Sc., P. Geol. and Steven Nicholls, BA.Sc, MAIG each of APEX and
Robert J. Farmer, B. Sc., P. Eng. of
BOYD (the "Preston Report").
All scientific and technical information in this press release
was prepared in accordance with the standards of the Canadian
Institute of Mining, Metallurgy and Petroleum and NI 43-101 and was
compiled, reviewed, verified and reported by Roy Eccles, M. Sc., P. Geol. who is the
qualified person for the purpose of NI 43-101. Sample preparation,
analytical techniques, laboratories used and quality
assurance-quality control protocols used during the exploration
drilling programs are done consistent with industry standards and
independent certified assay labs.
Source has not based its production decisions and ongoing mine
production on mineral reserve estimates, preliminary economic
assessments, pre-feasibility studies or feasibility studies. As a
result, there may be an increased uncertainty of achieving any
particular level of recovery of minerals or the cost of such
recovery and historically projects without any mineral reserves
have increased uncertainty and risk of failure.
Mineral resources are not mineral reserves and do not have
demonstrated economic viability. There is no guarantee that all or
any part of the mineral resource will be converted into a mineral
reserve.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute
forward-looking statements relating to, without limitation,
expectations, intentions, plans and beliefs, including information
as to the future events, results of operations and Source's future
performance (both operational and financial) and business
prospects. In certain cases, forward-looking statements can be
identified by the use of words such as "expects", "estimates",
"forecasts", "intends", "anticipates", "believes", "plans",
"seeks", "projects" or variations of such words and phrases, or
state that certain actions, events or results "may" or "will" be
taken, occur or be achieved. Such forward-looking statements
reflect Source's beliefs, estimates and opinions regarding its
future growth, results of operations, future performance (both
operational and financial), and business prospects and
opportunities at the time such statements are made, and Source
undertakes no obligation to update forward-looking statements if
these beliefs, estimates and opinions or circumstances should
change. Forward-looking statements are necessarily based upon a
number of estimates and assumptions made by Source that are
inherently subject to significant business, economic, competitive,
political and social uncertainties and contingencies.
Forward-looking statements are not guarantees of future
performance. In particular, this press release contains
forward-looking statements pertaining, but not limited, to: mineral
resources attributable to each mineral project. Statements relating
to mineral resources are deemed to be forward looking-statements,
as they involve the implied assessment, based on certain estimates
and assumptions, that the mineral resources described exist in the
quantities predicted or estimated and that the mineral resources
described might be able to be profitably produced in the
future.
By their nature, forward-looking statements involve numerous
current assumptions, known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of Source to differ materially from those anticipated
by Source and described in the forward-looking statements
With respect to the forward-looking statements contained in this
press release, assumptions have been made regarding, among other
things: proppant market prices; future oil, natural gas and natural
gas liquids prices; future global economic and financial
conditions; future commodity prices, demand for oil and gas and the
product mix of such demand; levels of activity in the oil and gas
industry in the areas in which Source operates; the continued
availability of timely and safe transportation for Source's
products, including without limitation, rail accessibility; the
maintenance of Source's key customers and the financial strength of
its key customers; the maintenance of Source's significant
contracts or their replacement with new contracts on substantially
similar terms and that contractual counterparties will comply with
current contractual terms; operating costs; that the regulatory
environment in which Source operates will be maintained in the
manner currently anticipated by Source; future exchange and
interest rates; geological and engineering estimates in respect of
Source's resources; the recoverability of Source's resources; the
accuracy and veracity of information and projections sourced from
third parties respecting, among other things, future industry
conditions and product demand; demand for horizontal drilling and
hydraulic fracturing and the maintenance of current techniques and
procedures, particularly with respect to the use of proppants;
Source's ability to obtain qualified staff and equipment in a
timely and cost-efficient manner; the regulatory framework
governing royalties, taxes and environmental matters in the
jurisdictions in which Source conducts its business and any other
jurisdictions in which Source may conduct its business in the
future; future capital expenditures to be made by Source; future
sources of funding for Source's capital program; Source's future
debt levels; the impact of competition on Source; and Source's
ability to obtain financing on acceptable terms.
A number of factors, risks and uncertainties could cause results
to differ materially from those anticipated and described herein
including, among others: the effects of competition and pricing
pressures; risks inherent in key customer dependence; effects of
fluctuations in the price of proppants; risks related to
indebtedness and liquidity, including Source's leverage,
restrictive covenants in Source's debt instruments and Source's
capital requirements; risks related to interest rate fluctuations
and foreign exchange rate fluctuations; changes in general
economic, financial, market and business conditions in the markets
in which Source operates; changes in the technologies used to drill
for and produce oil and natural gas; Source's ability to obtain,
maintain and renew required permits, licenses and approvals from
regulatory authorities; the stringent requirements of and potential
changes to applicable legislation, regulations and standards; the
ability of Source to comply with unexpected costs of government
regulations; liabilities resulting from Source's operations; the
results of litigation or regulatory proceedings that may be brought
against Source; the ability of Source to successfully bid on new
contracts and the loss of significant contracts; uninsured and
underinsured losses; risks related to the transportation of
Source's products, including potential rail line interruptions or a
reduction in rail car availability; the geographic and customer
concentration of Source; the ability of Source to retain and
attract qualified management and staff in the markets in which
Source operates; labour disputes and work stoppages and risks
related to employee health and safety; general risks associated
with the oil and natural gas industry, loss of markets, consumer
and business spending and borrowing trends; limited, unfavourable,
or a lack of access to capital markets; uncertainties inherent in
estimating quantities of mineral resources; sand processing
problems; and the use and suitability of Source's accounting
estimates and judgments.
Although Source has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in its forward-looking statements, there may
be other factors, including those described under the heading "Risk
Factors" in Source's long form prospectus dated April 6, 2017 and Source's short form prospectus
dated October 31, 2017, that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will materialize or prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. The forward-looking statements contained in this
press release are expressly qualified by this cautionary statement.
Readers should not place undue reliance on forward-looking
statements. These statements speak only as of the date of this
press release. Except as may be required by law, Source expressly
disclaims any intention or obligation to revise or update any
forward-looking statements or information whether as a result of
new information, future events or otherwise.
SOURCE Source Energy Services
