CALGARY, June 30 /CNW/ - Savanna Energy Services Corp. ("Savanna" or the
"Company") has contracted to move four drilling rigs into Mexico under
Savanna has entered into a contract with a large U.S. based,
multi-service provider to deploy four existing rigs from its Canadian/U.S.
fleet into the Chicontepec region in central eastern Mexico. The rigs are
contracted to work at a utilization rate of 100% for an initial term of 18
months, with an extension option.
The rigs to be supplied under this agreement are mid-depth telescoping
double drilling rigs, representing the core conventional platform within
Savanna. The rigs will require minor modifications to allow them to work
effectively in the Chicontepec region, such modifications and additional
equipment expected to total less than $6 Million. The rigs are expected to be
operational in Mexico by mid-August, 2009. All costs relating to mobilization
of the rigs into Mexico from the U.S./Mexico border will be borne by the
operator. Similarly, demobilization of the rigs, if any, will result in
delivery of the rigs to the U.S. as well. Given Savanna's intention to expand
both its U.S. and international operations, this flexibility will be
This represents the first expansion of Savanna's drilling operations
beyond Canada and the United States, however it is anticipated by the Company
that we will continue to expand our international presence moving forward.
Of the four rigs that are mobilizing to Mexico, two will be relocated
from the current U.S. fleet, and two will be delivered from the previously
announced four rig new-build program. With the execution of this contract,
Savanna now operates four rigs in Mexico, 14 in the U.S., 87 in Canada, and
will be accepting delivery of two additional new-builds by Q3, 2009, resulting
in a total fleet of 107 drilling rigs.
Savanna is a leading North American contract drilling and oilfield
services company providing a broad range of drilling, well servicing and
related services with a focus on fit for purpose technologies for key drilling
markets and industry-leading aboriginal relationships.
Cautionary Statement Regarding Forward-Looking Information and Statements
Certain statements and information contained in this press release may
constitute forward-looking information within the meaning of applicable
Canadian securities legislation and "forward-looking statements" within the
meaning of the United States Private Securities Litigation Reform Act of 1995.
The Company's guidance herein is preliminary. These statements are based
on certain assumptions and analysis made by the Company 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 the Company'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 the Company's expectations.
Consequently, all of the forward-looking information and statements made
in this press release are qualified by this cautionary statement and there can
be no assurance that the actual results or developments anticipated by the
Company will be realized or, even if substantially realized, that they will
have the expected consequences to or effects on the Company or its business or
operations. Except as may be required by law, the Company assumes no
obligation to update publicly any such forward-looking information and
statements, whether as a result of new information, future events, or
For further information:
For further information: Savanna Energy Services Corp., Ken Mullen,
President and CEO; Brad Stastook, Investor Relations Co-ordinator, Tel: (403)
503-9990, Fax: (403) 267-6749, www.savannaenergy.com