Click here to close now.

SYS-CON MEDIA Authors: Pat Romanski, Elizabeth White, Kevin Jackson, Peter Silva, Greg Wind

News Feed Item

Millennium New Build and Financing

CALGARY, ALBERTA -- (Marketwired) -- 08/15/14 -- Millennium Stimulation Services Ltd. ("Millennium" or the "Company") would like to provide an update on its current operational and growth activities. Given that the Company has been recently operating at very high rates of utilization and based on its clients' commitments, Millennium is moving forward with a new 18,000 BHP coil frac spread with enhanced capability in cryogenic gas capability to further develop the Company's LNG service strategy. In anticipation of this new build, Millennium has initiated a non-brokered private placement, as described below. For details regarding Millennium's expansion into LNG services, please refer to Millennium's press release regarding the acquisition of ENFRAC Inc.

Fleet Utilization

Industry activities appeared to be strengthening as it approaches 2015. The current utilization of the Millennium fleet speaks to this point.


--  Currently, one of Millennium's coil/frac fleets is under 100 percent 24
    hour contract commitment through to mid-2015 and beyond at favourable
    rate conditions.

--  The second coil/frac fleet is currently executing on spot work and/or
    smaller commitments for a number of clients. It is maintaining roughly
    70 percent utilization on a 12 hour schedule for clients looking at
    Millennium for potentially longer-term commitments.

--  The Company's near term efforts are to move both fleets into a 24-hour
    schedule in order to further meet customer demands.

--  As Millennium fleets remain in high demand, the Company will be
    exploring an increase in sales rates by first quarter 2015.

Millennium New Build Equipment

Millennium is constantly pushing to improve the completion results for our clients. The industry is steadily moving to higher pumping rates to increase well productivity for its clients. As a result, Millennium is taking the initiative to deploy a much larger multipurpose 18,000 BHP fleet for the plains region. A larger fleet will also lead the way to the possibility of expanding Millennium's horsepower and moving operations into areas with much larger requirements as well as foam fracing with either N2 or LNG. This new multipurpose fleet has the benefit of ensuring that the Company does not miss out on any opportunity within its pumping capacity. Of the total capability, 5,000 BHP will be assigned to pre-existing frac spreads. The total capital commitment for this fleet addition will be approximately $38 million. It is expected that the new fleet additions should be operational in early third quarter 2015.

Financing

On Monday July 28th, Millennium commenced with a non-brokered financing of up to $12 million to cover the equity portion of the new build equipment. The target price for the financing is $2.25 per common share. The Company has received favourable indications for lead orders for a substantial portion of the total equity financing and may increase the amount of its total financing should the need arise. It is anticipated that Millennium will fund the remainder of the new build through debt and cash flow.

Markets continue to improve and Millennium crews are in greater demand. The combination of the Company's current utilization of its equipment, build outs, and the ENFRAC acquisition should leave Millennium in a strong position to differentiate, and remain ahead of its competition. The new fleet build should have a strong appeal to clients based on its high rate capacity and cryogenic (both N2 and LNG) capability thus advancing Millennium's LNG service strategy. The Company anticipates that this new build will generate solid utilization rates. Given the current client base and successful feedback, commitments may be easier to maintain for all Millennium assets going through 2015, and continuing into 2016.

Forward Looking Statements and Advisories

This investor update contains certain forward-looking information and forward-looking statements (collectively, "forward-looking statements") under the meaning of applicable securities laws. The use of the words "would", "intend", "anticipate", "potential", "will", "expected", "can", "may", "should" and derivations thereof and similar terms identify forward-looking statements. In particular, but without limiting the foregoing, this news release contains forward-looking statements regarding: Millennium's plans and expectations regarding operational and growth activities; the anticipated benefits of the transaction to Millennium and its shareholders; the anticipated terms of the financing; the timing and cost of capital expenditures; and the timing of operations.

The forward-looking statements contained in this investor update reflect several material factors and expectations and assumptions of Millennium including, without limitation, assumptions relating to the ability of Millennium to execute its current business plan and operational plans in the manner currently planned. Millennium believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct.

The forward-looking statements contained in this investor update are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements, including among others: failure to realize the anticipated benefits of the transaction; the successful exploitation and integration of the technology; customer acceptance and demand for the technology; success in obtaining issued patents; the potential development competing technologies by market competitors; and the availability of products, raw materials and qualified personnel.

Accordingly, readers should not place undue reliance on the forward-looking statements contained herein. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this investor update are made as of the date of this investor update and Millennium disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

Contacts:
Millennium Stimulation Services
Michael Heier
President and Chief Executive Officer
(403) 234-8144

Millennium Stimulation Services
Roy Ma
Vice President, Business and Corporate Development
(403) 234-8144

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provide...
Modern Systems announced completion of a successful project with its new Rapid Program Modernization (eavRPMa"c) software. The eavRPMa"c technology architecturally transforms legacy applications, enabling faster feature development and reducing time-to-market for critical software updates. Working with Modern Systems, the University of California at Santa Barbara (UCSB) leveraged eavRPMa"c to transform its Student Information System from Software AG's Natural syntax to a modern application lev...
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in t...
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists will discuss how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations m...
Participants will reach the final if their IoT solution is liked. A community vote will determine the best solutions submitted in each country, after which an expert jury will select the national winners and the best international IoT solution. Each country's best solution can win a national marketing campaign worth up to €30,000 and become a partner in Deutsche Telekom's participating markets. The winning international solution can become partner of Deutsche Telekom Group across all eight coun...
ProfitBricks has launched its new DevOps Central and REST API, along with support for three multi-cloud libraries and a Python SDK. This, combined with its already existing SOAP API and its new RESTful API, moves ProfitBricks into a position to better serve the DevOps community and provide the ability to automate cloud infrastructure in a multi-cloud world. Following this momentum, ProfitBricks has also introduced several libraries that enable developers to use their favorite language to code ...
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable o...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) ap...
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at 16th Cloud Expo, Haseeb Budhani, CEO and Co-founder of Soha, will share five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the frict...
VoxImplant has announced full WebRTC support in the newest versions of its Android SDK and iOS SDK. The updated SDKs, which enable audio and video calls on mobile devices, are now compatible with the WebRTC standard to allow any mobile app to communicate with WebRTC-enabled browsers, including Google Chrome, Mozilla Firefox, Opera, and, when available, Microsoft Spartan. The WebRTC-updated SDKs represent VoxImplant's continued leadership in simplifying the development of real-time communication...
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to off...
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquir...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...