CALGARY, Dec. 7, 2017 /CNW/ - This news release contains forward looking statements within the meaning of applicable securities law. See the section below called "Cautionary Statements on Forward Looking Information" for full disclosure of such forward looking information and the risks to which they are subject. All currency referred to herein is Canadian dollars.
Ensign Energy Services Inc. ("Ensign" or "the Company") (TSX: ESI) announces a 2018 capital expenditure plan of $64 million, comprised of $43 million for capital maintenance on the fleet and $21 million of equipment and optimization upgrades to the current fleet.
Ensign's capital plan focuses on the continuation of appropriate certification and preventative maintenance of its high spec fleet in addition to the selective addition of higher capacity pumps, high torque top drive upgrades, and enhanced "Ensign Edge" drilling optimization systems in order to service the long reach lateral horizontal market and enhance margins.
We project the 2017 net capital expenditures to be approximately $105 million, which included delivery of two (2) new build drilling rigs (1 ADR-1500, 1 ADR-850), one new well servicing rig destined for the Permian basin, and major upgrades to two (2) 1500 HP rigs into super-spec ADR-1500's, also for the long reach horizontal Permian area.
The Company is also pleased to announce the appointment of Mr. Gary Casswell to its Board of Directors, effective December 4, 2017. Mr. Casswell has over 35 years of experience as a senior executive in the onshore and offshore drilling industries. His industry career most recently included tenure as the President & Chief Executive Officer of Northern Offshore Ltd., a Bermuda-based offshore drilling company, listed on the Oslo exchange, with offshore rigs used in both benign and harsh environments worldwide. Prior to that, Mr. Casswell acted as the Vice President of Eastern Hemisphere Operations for Pride International, a Houston, Texas based drilling company that was acquired by Ensco plc in 2011. Mr. Casswell has lived and worked extensively throughout the Middle East, including in Kuwait, Saudi Arabia and Oman, and has extensive experience in the United States land drilling market. He obtained a Bachelor of Science degree in Business Administration from the University of California, Long Beach in 1980.
Cautionary Statements on Forward-looking Information
Certain statements in this news release constitute forward-looking statements or information (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements generally can be identified by the words "believe", "anticipate", "expect", "plan", "estimate", "target", "continue", "could", "intend", "may", "potential", "predict", "should", "will", "objective", "project", "forecast", "goal", "guidance", "outlook", "effort", "seeks", "schedule" or expressions of a similar nature suggesting future outcome or statements regarding an outlook.
In particular, forward looking statements include, but are not limited to, our planned capital expenditures for 2018, including the expected allocations of capital under our 2018 plan; anticipated activity levels in 2018 and our scheduled infrastructure projects; and our expected total capital expenditures for 2017.
The forward-looking statements are based on current expectations, estimates and projections about us and the industries in which we operate, which speak only as of the date hereof. They are subject to certain assumptions and analyses made by Ensign based upon our experience and our perception of current conditions, trends, expected future developments, known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, and other factors we believe are appropriate under the circumstances.
Such assumptions and risk factors relate to and include, among others: general economic and business conditions which will, among other things, impact demand for and market prices of our services and the ability of our customers to pay accounts receivable balances; volatility of and assumptions regarding crude oil and natural gas commodity prices; fluctuations in currency and interest rates; economic conditions in the countries and regions in which we conduct business; political uncertainty and civil unrest; our ability to implement our business strategy; impact of competition; our defence of lawsuits; availability and cost of labour and other equipment, supplies and services; our ability to complete our capital programs; operating hazards and other difficulties inherent in the operation of our oilfield services equipment; availability and cost of financing and insurance; timing and success of integrating the business and operations of acquired companies; actions by governmental authorities; government regulations and the expenditures required to comply with them (including safety and environmental laws and regulations and the impact of climate change initiatives on capital and operating costs); the adequacy of our provision for taxes; and other circumstances affecting our business, revenues and expenses.
For additional information, refer to Ensign's Annual Information Form for the year ended December 31, 2016, available on SEDAR at www.sedar.com. Readers are cautioned that the list of important factors contained herein are not exhaustive. Unpredictable or unknown factors could also have material adverse effects on forward-looking statements. Ensign undertakes no obligation to update publicly or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as required by law.
Ensign is a global leader in oilfield services, headquartered out of Calgary, Alberta, operating in Canada, the United States and internationally. We are one of the world's top land-based drilling and well servicing contractors serving crude oil, natural gas and geothermal operators. Our premium services include contract drilling, directional drilling, underbalanced and managed pressure drilling, rental equipment, well servicing and production services. Please visit our website at ensignenergy.com.
Ensign's common shares are publicly traded though the facilities of the Toronto Stock Exchange under the trading symbol ESI.
SOURCE Ensign Energy Services Inc.
For further information: Ensign Energy Services Inc., 400 - 5th Avenue S.W., Suite 1000, Calgary, Alberta T2P 0L6 Canada, Mr. Michael Gray, Chief Financial Officer, Telephone: 403.262.1361