|By Marketwired .||
|July 14, 2014 05:05 PM EDT||
CALGARY, ALBERTA -- (Marketwired) -- 07/14/14 -- Savanna Energy Services Corp. ("Savanna") (TSX: SVY) is pleased to announce it has signed a contract for its previously disclosed VELOX Drilling Rig for deployment in the Permian Basin in West Texas. The VELOX Drilling Rig is a 1,500HP AC electric, highly mobile triple drilling rig that is expected to begin working in the field in Q4 2014 under a multi-year take-or-pay contract.
The new AC powered triple drilling rig is an extension of Savanna's leading edge rig design platform, and an integral part of Savanna's long-term strategy. The 750,000 lb. rig incorporates true craneless rig up capability, automated pipe handling, moving systems and catwalks. The capital cost of this drilling rig has already been included in Savanna's previously announced 2014 capital budget of $206 million.
Savanna continues to focus on new-build opportunities to increase the depth and capacity of its drilling fleet, expanding Savanna's offering of deep double and triple drilling rigs. Additionally, Savanna continues to drive toward achieving a stronger balance between its Canadian business and operations in geographies outside of Canada.
Savanna is currently building 12 drilling and workover rigs for delivery in the next 12 months, of which 11 are committed under long term contract with terms ranging from two to four years. The current rig build program includes three VELOX 1,500 HP AC Electric Triple Drilling Rigs, one Ultra Heavy 1,200HP AC Electric Double Drilling Rig, five Australian Workover Rigs and three Australian Flushby Units.
Savanna is a leading North American and Australian 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 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 use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "might" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to the expectation of when the VELOX Drilling Rig is expected to be working in the field and the delivery of 12 drilling and workover rigs in the next 12 months.
These statements are based on certain assumptions and analysis made by Savanna in light of its experience as well as other factors it believes are appropriate in the circumstances including, without limitation: the progress of Savanna's current and proposed capital projects and current customer advice on deployment for specific customer programs. However, whether actual results or events will conform to Savanna's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and events to differ materially from Savanna's expectations including, without limitation: fluctuations in the price and demand for oil and natural gas; fluctuations in the level of oil and natural gas exploration and development activities; fluctuations in the demand for well servicing and contract drilling; the effects of weather conditions on operations and facilities; the existence of competitive operating risks inherent in well servicing and contract drilling; general economic, market or business conditions; changes in laws or regulations, including taxation, environmental and currency regulations; the lack of availability of qualified personnel or management; the other risk factors set forth under the heading "Risks and Uncertainties" in Savanna's Annual Report and under the heading "Risk Factors" in Savanna's Annual Information Form; and other unforeseen conditions.
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 events anticipated by Savanna will be realized or, even if substantially realized, that they will have the expected effects on Savanna or its business or operations. Except as may be required by law, Savanna assumes no obligation to update publicly any such forward looking information and statements, whether as a result of new information, future events, or otherwise.
Savanna Energy Services Corp.
President and CEO
Savanna Energy Services Corp.
Executive Vice-President and CDO