CALGARY, ALBERTA--(Marketwired - Dec. 16, 2013) - Savanna Energy Services Corp. ("Savanna") and Fort McKay First Nation ("Fort McKay") are pleased to announce that Fort McKay-Savanna Energy Services Limited Partnership ("Partnership") has agreed to an initial purchase of approximately $19.5 million of equipment, funded by a combination of cash and capital contributions by Fort McKay and Savanna, and a Partnership-specific credit facility. The Partnership will operate the equipment in the Regional Municipality of Wood Buffalo this winter drilling season. The Partnership was formed earlier this year to provide drilling, well servicing and coring services as well as oilfield rental equipment in this region.
The equipment acquired consists of 125 pieces of oilfield rental equipment and well site accommodation units which have either been purchased new or will be transferred from Savanna's existing inventory, as well as two CT-1500 hybrid coring rigs and two workover rigs, which will be sourced from Savanna's existing fleet of equipment. The hybrid coring rigs and workover rigs are either contracted or committed for the winter season with large oil sands customers with significant operations near Fort McKay.
The Partnership has also opened its oilfield rentals shop and yard in the Caribou Energy Park located on the Fort McKay First Nation reserve. This location will be the regional office, distribution and service centre for the Partnership's oilfield rentals equipment as well as a support centre for its drilling and well servicing operations. Savanna and Fort McKay are pleased with this first equipment infusion to the Partnership and will continue to seek additional customer opportunities.
Fort McKay is a Cree, Dene, and Métis community located approximately 60 kilometres north of Fort McMurray and has a long history of providing high quality services to the energy industry through its joint venture businesses, and the Fort McKay Group of Companies. Fort McKay is continuing that tradition by partnering with Savanna to access opportunities in the surrounding oil sands regions by providing drilling, workover and rental services to energy companies operating in northeastern Alberta.
Savanna has had extensive experience working in partnerships with First Nation communities throughout Alberta since 2002. Savanna has been widely recognized for its partnership approach, winning the prestigious Alberta Chamber of Commerce "Aboriginal Partnership Award" in 2005 and 2012, as well as the Premier's Award of Distinction in 2010.
Savanna is a leading North American contract drilling and oilfield services company providing a broad range of drilling, coring, 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.
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 status of current negotiations with its customers, the progress of Savanna's current 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. Consequently, 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.