CALGARY, Jan. 10 /CNW/ - Canyon Services Group Inc. (TSX : FRC) is pleased to announce an increase of $13 million to its 2011 capital expenditure program resulting in a total capital budget for the year of approximately $68 million.  The additional capital will add 25,000 hydraulic horsepower ("HHP") to Canyon's pressure pumping fleet, expanding Canyon's total hydraulic pumping fleet capacity to 175,000 HHP. 

The revised 2011 capital program of approximately $68 million now consists of 50,000 HHP, associated blenders, sand handling transportation and storage equipment, two deep coil tubing units and miscellaneous other support equipment and facilities. All pumping and associated equipment pursuant to the revised capital program is expected to be delivered in Q3 and Q4 of 2011.

Canyon continues to focus its operations in the Western Canadian Sedimentary Basin where the equipment from the 2011 capital program is expected to be deployed.

Canyon is in a very strong financial position and anticipates funding the capital expansion program from existing cash and cash flow from operations.


This document contains certain forward-looking information and statements within the meaning of applicable securities laws.  The use of any of the words "expect", "anticipate", "continue", "estimate", "guidance", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "budget", "strategy" and similar expressions are intended to identify forward-looking information or statements.  In particular, but without limiting the foregoing, this document contains forward-looking information and statements pertaining to the following: future oil and natural gas prices; future results from operations; future liquidity and financial capacity and financial resources; future costs, expenses and royalty rates; future interest costs; future capital expenditures; future capital structure and expansion; the making and timing of future regulatory filings; and the Company's ongoing relationship with major customers.  These forward looking statements include, among others:

  • the expectation that the expansion capital is required to support customer demand in the Western Canadian Sedimentary Basin;
  • the expectation that strong customer demand in the Western Canadian Sedimentary Basin will continue in 2011;
  • the expectation that the budgeted capital will be funded with existing cash, and cash flow from operations;
  • the availability of products, qualified personnel, manufacturing capacity and raw materials.

The forward-looking information and statements contained in this document reflect several material factors and expectations and assumptions of the Company including, without limitation: that the Company will continue to conduct its operations in a manner consistent with past operations; the general continuance of current or, where applicable, assumed industry conditions; the continuance of existing (and in certain circumstances, the implementation of proposed) tax, royalty and regulatory regimes; certain commodity price and other cost assumptions; the continued availability of adequate debt and/or equity financing and cash flow to fund its capital and operating requirements as needed; and the extent of its liabilities.  The Company believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable but no assurance can be given that these factors, expectations and assumptions will prove to be correct.

The forward-looking information and statements included in this document are not guarantees of future performance and should not be unduly relied upon.  Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of the Company's services; unanticipated operating results; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in the development plans of third parties; increased debt levels or debt service requirements; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; the potential development of competing technologies by market competitors; weather; reliance on industry partners; and certain other risks detailed from time to time in the Company's public disclosure documents (including, without limitation, those risks identified in this document and the Company's Annual Information Form).

The forward-looking information and statements contained in this document speak only as of the date of the document, and none of the Company or its subsidiaries assumes any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.

SOURCE Canyon Services Group Inc.

For further information:

Brad Fedora, President & CEO  
Canyon Services Group Inc.  
Phone:  403-290-2491   
Fax:  403-355-2211    

    Barry O'Brien, Vice President, Finance & CFO
Canyon Services Group Inc.
Phone:  403-290-2478 
Fax:  403-355-2211

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