CALGARY, July 2, 2013 /CNW/ - Winalta Inc. ("Winalta" or the "Company") is pleased to announce two new long term service agreements to supply Integrated Wellsite System (IWS) to separate oil and gas producers. Winalta now has a total of three IWS agreements from three different oil and gas producers.
The first IWS was mobilized late June and is currently operational in the Fort McMurray area of Alberta on a SAGD pad location. Under the service agreement, Winalta has contracted the IWS to its customer for a period of 3 years of consecutive work which commenced June, 2013.
The second IWS is scheduled to mobilize in early July 2013 and will be operating at a facility site in Northern Alberta. Under the service agreement, Winalta will contract the IWS to its customer for a period of 1 year of consecutive work commencing July, 2013. The service agreement includes a right of first refusal for a second and third year. The service agreement contains a modified take or pay clause which will guarantee Winalta's utilization of the IWS over the first year of operations.
The previously announced third IWS, is scheduled to mobilize in August 2013 and will be operating at a SAGD drilling program in the Fort McMurray area of Alberta. Under the service agreement, Winalta will contract the IWS to its customer for a period of 450 days of consecutive work. The service agreement contains a modified take or pay clause which will guarantee Winalta's utilization of the IWS over this period of time.
"The Company continues to pursue a number of other contracts in the SAGD pad and multilateral drilling space which we believe is ideally suited for our newly designed IWS. We were pleased to see that the IWS concept worked for a major E&P on a facility site as opposed to SAGD pad drilling for which the IWS was originally designed. We have received positive field feedback from the first IWS mobilized last week, showing that an office work environment for pad drilling is not only a better, more productive concept but one that`s showing its benefits at the field level. " said Austin Fraser, President, Winalta Inc.
About the IWS
The IWS is a new product to the surface rentals business and was designed by Winalta and its manufacturer, ALTA-FAB Structures Ltd. The design of the IWS was purpose built to bring an office work environment to SAGD pad and multilateral drilling platforms. The IWS is a six unit, fully self-contained, office and executive living quarters for up to 12 field personnel. Many SAGD and multilateral drilling pad locations use individual Wellsites and a separate office trailer for their employees. Winalta's IWS complex integrates those units into a single living and work space that facilitates communication and productivity amongst field personnel while decreasing the onsite footprint.
Winalta Oilfield Rentals, specializes in innovative and high-quality modular buildings for the Western Canadian Oil and Gas Industry. Winalta's rental fleet is comprised of single-unit Wellsites, Integrated Wellsite Systems (IWS), Dedicated Geo Labs, and Drill Camps.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information set forth in this press release, including the timing for IWS mobilization and IWS utilization may constitute forward-looking statements. By their nature, forward-looking statements involve material assumptions and are subject to numerous risks and uncertainties, including with respect to market and economic conditions and their impact on the Company's business, some of which, are beyond the Company's control. Readers are cautioned not to place undue reliance on the forward-looking statements as the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and actual results, performance or outcomes could materially differ from those expressed or implied in such forward-looking statements and accordingly, no assurance can be given that any of the events anticipated by forward looking statements will transpire or occur, or if any of them do so, what benefit Winalta will derive there from. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
SOURCE: Winalta Inc.
Austin Fraser, President
Phone: (403) 826-5701
David Hopley, CFO
Phone: (780) 469-0143