Calmena Energy Services Inc.
TSX : CEZ

Calmena Energy Services Inc.

November 29, 2010 08:00 ET

Calmena Energy Services Inc. Announces Expansion Into Brazil

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2010) - Calmena Energy Services Inc. ("Calmena" or the "Company") (TSX:CEZ) is pleased to announce it has acquired a contract to provide heliportable drilling services for Petroleo Brasileiro S.A. ("Petrobras"), the Brazilian state oil company, in the Amazon region of Brazil. The contract is for four years, with an option to renew for a further four year term. Delivery of the heliportable rig is scheduled for the first quarter of 2011 and operations are anticipated to commence in the second quarter of 2011. The rig is currently under construction in the United States. Calmena expects to fund the project from existing credit facilities and through a subordinated debt facility provided, directly and indirectly, by two directors of the Company.

Calmena will direct operations in the Amazon from an operational base in Manaus and utilize its country headquarters in Rio de Janeiro to support ongoing growth initiatives. The Company has established a core Brazilian operational team, familiar with Amazon related heliportable operations and with proven industry track records in the onshore Brazil market. Their local knowledge, experience and expertise will be key to Calmena's success in Brazil.

Calmena is delighted to begin its Brazilian operations providing heliportable drilling services to Petrobras. This project opens the door to the tremendous growth potential of the Brazilian onshore drilling service business and establishes a foundation for further heliportable rig related expansion in Latin America. In September, Petrobras completed the world's largest share offering, raising $70 billion with the goal to establish Brazil as a major energy exporter. While much of the attention has been directed at the country's offshore reserves, more recently there has been increasing recognition of the potential of the country's multiple onshore basins. We believe the combination of Petrobras' expanding onshore commitment, increasing foreign interest from international producers already established in adjacent Latin American markets, as well as the emergence of several well funded Brazilian producers creates an attractive and growing market for Calmena's services.

ABOUT CALMENA ENERGY SERVICES INC
Calmena is a diversified energy services company that provides well construction services to its customers operating in Canada, the United States, Latin America as well as the Middle East and North Africa. The common shares of Calmena trade on the Toronto Stock Exchange under the symbol "CEZ".

FORWARD LOOKING STATEMENTS

This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. Such statements represent Calmena's internal projections, estimates or beliefs concerning, among other things, the timing for construction and delivery of a drilling rig, the performance of a drilling services agreement with Petrobras, the potential for growth of the energy business in Brazil, the ability of Calmena to exploit energy market growth opportunities in Brazil and other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. These statements are only predictions and actual events or results may differ materially. Although Calmena believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Calmena's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Calmena.

More particularly, and without limitation, this news release contains forward-looking statements and information with respect to statements respecting: the length of the Petrobras drilling services contract acquired by the Company, the timing for construction and delivery of the drilling rig to service the Petrobras contract, the timing of commencement of drilling operations in Brazil, the ability of the Company to debt finance the construction of the drilling rig, the nature of the Company's drilling operations in Brazil, the potential for growth of the energy business in Brazil and the ability of Calmena to exploit opportunities for growth in the demand for oil and gas drilling services in Brazil. These forward-looking statements and information are based on certain key expectations and assumptions made by the Company regarding: the implementation of the Company's international growth strategy; current commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; ability of Calmena to re-finance or extend the maturity date of its senior and subordinated debt; future exchange rates; the price of oil and natural gas; the impact of increasing competition; conditions in general economic and financial markets; supply and demand for oilfield services relating to the drilling, completion and maintenance of oil and gas wells as well as services related to oilfield equipment rentals and production and ancillary services; effects of regulation by governmental agencies; and future operating costs. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because the Company can give no assurance that they will prove to be correct.

Since forward-looking statements and information address future events, by their nature, such statements and information involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks, including, but not limited to, the impact of general economic conditions; industry conditions; volatility of commodity prices; decreased demand for energy services; competition from other energy services providers; the lack of availability of qualified personnel or management; ability of Calmena to re-finance or extend the maturity date of its senior and subordinated debt and generate positive cash flow; failure of counterparties, including Petrobras, to perform on contracts; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; international operations; seasonality; loss of key customers; fluctuations in foreign exchange or interest rates and stock market volatility; supply and demand for oilfield services relating to the drilling, completion and maintenance of oil and gas wells as well as services related to, oilfield equipment rentals and production and ancillary services; liabilities and risks, including environmental liabilities and risks inherent in oil and natural gas operations; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; and the ability to access sufficient capital from internal and external sources.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of the Company is included in reports on file with the applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). 

The forward-looking statements and information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.

Contact Information

  • Calmena Energy Services Inc.
    John King
    President and Chief Executive Officer
    (403) 225-3879
    (403) 366-2066 (FAX)
    or
    Calmena Energy Services Inc.
    Peter Balkwill
    Vice President, Finance & CFO
    (403) 225-3879
    (403) 366-2066 (FAX)
    or
    Calmena Energy Services Inc.
    700, 333 - 7th Avenue SW
    Calgary, Alberta T2P 2Z1
    www.calmena.com