Canyon Services Group announces coiled tubing assets acquisition and corresponding increase to its 2014 capital budget
TSX - FRC
CALGARY, July 8, 2014 /CNW/ - Canyon Services Group Inc. ("Canyon") is pleased to announce that it has acquired four deep coiled tubing packages which include twin fluid pumpers, BOPs, injectors and three cranes (the "Assets") from a Canadian oilfield services company for approximately $19.7 million. All of the Assets are less than 12 months old and the coiled tubing units have depth capacities of approximately 6,000 meters with 2 3/8 inch diameter coil. This acquisition will increase Canyon's deep coiled tubing fleet to 11 units. Canyon expects to deploy the Assets in NW Alberta and NE British Columbia. The Asset purchase is expected to close no later than July 15, 2014 and will be funded using Canyon's current banking facilities.
Including the purchase of the Assets, Canyon's 2014 capital budget has increased to approximately $94.5 million. This amount includes the previously announced budget of $62.9 million, $3.2 million recently allocated to expand Canyon's Grande Prairie operating base and approximately $8.7 million that will be spent over the remainder of 2014 in the Fraction Energy Services division.
Canyon's common shares trade on the Toronto Stock Exchange under the symbol "FRC". Canyon provides high-quality fracturing and related stimulation services to the oil and gas industry in the Western Canadian Sedimentary Basin.
SOURCE Canyon Services Group Inc.For further information: Brad Fedora, President and CEO, Canyon Services Group Inc., 2900 Bow Valley Square III, 255 - 5th Avenue SW, Calgary, Alberta, T2P 3G6, Phone: 403-290-2491, Fax: 403-355-2211; Barry O'Brien, Vice President, Finance and CFO, Canyon Services Group Inc, 2900 Bow Valley Square III, 255 - 5th Avenue SW, Calgary, Alberta, T2P 3G6, Phone: 403-290-2478, Fax: 403-355-2211