All values are in Canadian dollars unless otherwise indicated.
CALGARY, Sept. 15, 2011 /CNW/ - Provident Energy Ltd. (Provident) (TSX:
PVE) (NYSE: PVX) announces today that it has entered into agreements
with NOVA Chemicals Corporation (NOVA Chemicals) for the lease of two
underground storage caverns currently under development at the
Provident Redwater Facility, along with associated facilities to be
"Our Redwater Facility is a key growth platform for Provident and we are
excited to be providing NOVA Chemicals with these new storage
services," said Doug Haughey, Chief Executive Officer. "Our capital
spending is focused on fee-for-service business like this."
The total amount of storage leased under these long-term agreements is
approximately one million barrels with staged on-stream dates of Q3
2012 and Q1 2013. The total capital cost of the caverns, and associated
facilities, is anticipated to be approximately $100 million. A portion
of this capital was already included in Provident's expanded 2011
capital program and an estimated $77 million remains to be spent in
2012, approximately half of which is incremental to Provident's
previously indicated future growth capital estimate of $70 million per
year. Both caverns and the associated facilities have been leased on a
cost-of-service basis for the exclusive use of NOVA Chemicals.
These caverns are two of several Provident plans to develop to meet the
strong market demand for underground hydrocarbon storage in the greater
Fort Saskatchewan area.
Provident Energy Ltd. is a Calgary-based corporation that owns and
manages a natural gas liquids (NGL) infrastructure and logistics
business. Provident's facilities are strategically located in Western
Canada and in the premium NGL markets in Eastern Canada and the U.S.
Provident provides monthly cash dividends to its shareholders and
trades on the Toronto Stock Exchange and the New York Stock Exchange
under the symbols PVE and PVX, respectively.
This document contains certain forward-looking statements concerning
Provident, as well as other expectations, plans, goals, objectives,
information or statements about future events, conditions, results of
operations or performance that may constitute "forward-looking
statements" or "forward-looking information" under applicable
securities legislation. Such statements or information involve
substantial known and unknown risks and uncertainties, certain of which
are beyond Provident's control, including the impact of general
economic conditions in Canada and the United States, industry
conditions, changes in laws and regulations including the adoption of
new environmental laws and regulations and changes in how they are
interpreted and enforced, increased competition, the lack of
availability of qualified personnel or management, pipeline design and
construction, fluctuations in commodity prices, foreign exchange or
interest rates, stock market volatility and obtaining required
approvals of regulatory authorities.
Such forward-looking statements or information are based on a number of
assumptions which may prove to be incorrect. In addition to other
assumptions identified in this news release, assumptions have been made
regarding, among other things, commodity prices, operating conditions,
capital and other expenditures, and project development activities.
Although Provident believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue
reliance should not be placed on forward-looking statements because
Provident can give no assurance that such expectations will prove to be
correct. Forward-looking statements or information are based on current
expectations, estimates and projections that involve a number of risks
and uncertainties which could cause actual results to differ materially
from those anticipated by Provident and described in the
forward-looking statements or information.
The forward-looking statements or information contained in this news
release are made as of the date hereof and Provident undertakes no
obligation to update publicly or revise any forward-looking statements
or information, whether as a result of new information, future events
or otherwise unless so required by applicable securities laws. The
forward-looking statements or information contained in this news
release are expressly qualified by this cautionary statement.
SOURCE Provident Energy Ltd.
For further information:
| Investor and Media Contact: |
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Phone (403) 231-6710
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2100, 250 -2nd Street SW
Calgary, Alberta T2P 0C1
Phone: (403) 296-2233
Toll Free: 1-800-587-6299
Fax: (403) 264-5820