Pure Energy Announces 2012 Capital Expenditure Program

TSX - PSV

CALGARY, Jan. 26, 2012 /CNW/ - Pure Energy Services Ltd. ("Pure" or the "Company") announced today that its Board of Directors has approved a capital expenditure budget for 2012 of approximately $53 million, which includes $11 million of capital expenditures carried over from its 2011 capital expenditure program.  The budgeted expenditures will be deployed in the Company's Frac Flowback (approximately $23 million) and Cased Hole Wireline operations (approximately $30 million) in Canada and the USA.

The $23 million of budgeted expenditures for Pure's Frac Flowback operations include the addition of 15 high pressure flowback units (4 of which were carried over from the 2011 expenditure program) and the purchase of auxiliary equipment such as high pressure pipe, storage tanks and line heaters.  Currently, 9 of the new flowback units are planned to be used in Canada and the remaining 6 units in the USA. In addition, to meet customer requirements, the budget also includes costs to automate and equip several of Pure's new flowback units to allow flowback of liquid propane gas ("LPG") used in certain fracturing operations. 

The $30 million of budgeted expenditures for Pure's Cased Hole Wireline operations include the construction of 8 new wireline units (all for the USA) as well as logging, fiber optic sensing and high pressure equipment.  Funds have also been allocated for refurbishment or replacement of existing equipment, auxiliary equipment, new tool development and upgrade of information systems.

A portion of the auxiliary equipment planned for each operating division will replace equipment currently rented by the Company and is expected to reduce operating costs.

Approximately 70% of the capital expenditures are planned for the first half of 2012, with the related equipment expected to be available for deployment in the current year. 

The Company's equipment fleets, after considering the planned additions for 2012, are as follows:

  # of units at
Dec. 31, 2011
budgeted
additions in 2012
# of units
after additions
Frac Flowback*      
  Canada       71       9       80
  USA       53       6       59
  Total       124       15       139
       
Wireline      
  Canada       64       0       64
  USA       19       8       27
  Total       83       8       91

*   Included in the Frac Flowback fleet at December 31, 2011 are 5 units dedicated to LPG flowback work (4 in Canada and 1 in the USA). Included in the budgeted 2012 additions are 3 units that will be dedicated to LPG flowback (2 in Canada and 1 in the USA).

Pure is an oilfield services company that provides completion and drilling related services to oil and gas exploration and development entities in the Western Canadian Sedimentary Basin and, through its wholly-owned subsidiary, Pure Energy Services (USA), Inc., in the Rocky Mountain region, North Dakota and the Appalachian Basin of the USA.

Forward-looking Statements

Certain information contained in this news release may constitute forward-looking statements within the meaning of applicable securities laws.  The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends", "budgets" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information concerning management's assessment of future plans and operations of Pure, the 2012 capital expenditures budget, anticipated 2012 capital expenditures and the timing thereof, equipment fleet additions and fleet size and expectations regarding demand for the Company's services.  These forward-looking statements and information are based on certain key expectations and assumptions made by Pure. Although Pure believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as Pure cannot give any assurance that they will prove to be correct.  Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties, certain of which are beyond the Company's control, including without limitation the impact of general economic conditions; industry conditions; commodity prices; fluctuation of exchange rates; health, safety and environmental risks; competition; availability of equipment and qualified personnel and management; dependence on major customers; uncertainties in weather and temperature affecting the duration of service period and the activities that can be completed; changes in legislation, including without limitation tax laws, royalties and environmental legislation; and timely and cost effective access to sufficient capital from internal and external sources.  As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.  Readers are cautioned that the foregoing list of factors is not exhaustive.  Additional information on these and other factors that could affect Pure's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be access through the SEDAR website (www.sedar.com) and at the Company's website (www.pure-energy.ca).  Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Pure does not undertake any obligation to update publicly or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Requests for shareholder information should be directed to:

Kevin Delaney
CEO
E-mail:  kdelaney@pure-energy.ca

Chris Martin
Chief Financial Officer
E-mail:  cmartin@pure-energy.ca

Address:

10th Floor, 333 - 11th Avenue S.W.
Calgary, AB
T2R 1L9
Phone: 
Fax: 
(403) 262-4000
(403) 262-4005

 

 

 

 

SOURCE Pure Energy Services Ltd.

For further information:

Kevin Delaney
CEO
E-mail:  kdelaney@pure-energy.ca

Chris Martin
Chief Financial Officer
E-mail:  cmartin@pure-energy.ca

Address:

10th Floor, 333 - 11th Avenue S.W.
Calgary, AB
T2R 1L9
Phone: 
Fax: 
(403) 262-4000
(403) 262-4005

 

Profil de l'entreprise

Pure Energy Services Ltd.

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