CALGARY, Feb. 25, 2013 /CNW/ - Winalta Inc. ("Winalta" or the "Company") is pleased to announce it has entered into a long term service agreement to supply an Integrated Wellsite System (IWS) to an oil and gas producer undertaking 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 commencing August, 2013. 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 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.
"The Company started developing the Integrated Wellsite System over a year ago and we are pleased to have entered into our first long term service agreement for this new product offering. We are pursuing a number of other contracts in the SAGD pad and multilateral drilling space which we believe is ideally suited to our newly designed Integrated Wellsite System. Winalta will continue working to expand its market share in the SAGD pad and multilateral drilling space which operates over longer timeframes, often year round, and is less seasonal than conventional drilling. The longer term nature of our IWS product will complement our spot rate Wellsite business well, providing equipment utilization on a consistent basis thereby making Winalta less reliant on seasonal work. Winalta will continue to look for other opportunities to expand into pad drilling, either with new products such as the IWS or with its new fleet of Wellsites" said Austin Fraser, Senior Vice President, Winalta Inc.
Winalta Inc., operating under the trade name, Winalta Oilfield Rentals, is an oilfield service provider that specializes in portable industrial rental accommodations, remote offices and Dedicated Geo Labs; servicing the Western Canadian oil and gas Industry.
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 ability of Winalta to expand its IWS rentals and product offerings 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.
For further information:
David Hopley, CFO Phone: (780) 960-6900
Austin Fraser, Senior Vice President Phone: (403) 826-5701