GasFrac Energy Services Inc.

GasFrac Energy Services Inc.

September 26, 2011 18:05 ET

GASFRAC Enters Into Multi-Year Contract with Husky

CALGARY, ALBERTA--(Marketwire - Sept. 26, 2011) - GASFRAC Energy Services Inc. (TSX:GFS) ("GASFRAC") today announced that they have entered into the three year contract with a two year renewal option with Husky Energy ("Husky") for the provision of LPG fracturing services.

Reid MacDonald, GASFRAC's President stated "Husky was one of the early adopters of the GASFRAC LPG technology and has completed significant analysis of the impact of our process on reservoir deliverability. GASFRAC has sufficient equipment available to meet the initial requirements under the contact and will monitor its need for additional equipment on an ongoing basis.

With the combination of the wet second quarter and less than anticipated fracs completed in the third quarter under this contract, GASFRAC's 2011 revenue and earnings will be less than originally anticipated. However, given the continued customer diversification, adoption of the propane fracturing technology and backlog of work required under this contract, GASFRAC expects 2012 to be a year where significant growth in revenue, cash flow and earnings are realized."

GASFRAC is an oil and gas service company headquartered in Calgary, Alberta, Canada, whose primary business is to provide LPG fracturing services to oil and gas companies in Canada and the USA.

This press release contains certain statements that constitute forward-looking statements under applicable securities legislation. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. These statements are only as of the date of this document and we do not undertake to publicly update these forward looking statements except in accordance with applicable securities laws. Forward-looking statements are based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect and therefore such forward-looking statements should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its products and services. Forward-looking statements are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials. In addition, actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth under the section entitled "Business Risks" in the Company's MD&A.

Contact Information

  • GASFRAC Energy Services Inc.
    James M Hill
    Chief Financial Officer