Open Range Energy Corp.
TSX : ONR

Open Range Energy Corp.

July 18, 2011 07:45 ET

Open Range Energy Corp. Provides Update on Growth in Poseidon Concepts Fracturing Fluid Tank Fleet

CALGARY, ALBERTA--(Marketwire - July 18, 2011) - Open Range Energy Corp. (TSX:ONR) ("Open Range" or the "Company") is pleased to provide an update on the deployment of its growing fleet of Poseidon Concepts fracturing fluid handling systems in Canada and the United States.

The combined North American tank fleet of the Poseidon Concepts business unit currently numbers 125 systems, up from 100 in May 2011. Approximately 60 percent of the fleet is deployed in the United States. Poseidon's service offering of three large tank models holding up to 41,000 barrels of fracturing fluids has continued to meet with positive response from a growing number of customers, driving ongoing growth and geographical diversification.

As of early July the fleet was deployed in numerous oil and liquids-rich natural gas plays in Alberta's Deep Basin, the B.C. Montney, the North Dakota and Montana Bakken, the Niobrara Shale and Denver-Julesburg Basin in Colorado and Wyoming, the Piceance Basin in Colorado, the Anadarko Basin in Oklahoma and the Marcellous Basin in Pennsylvania.

As the modular Poseidon tanks are highly mobile, they are responsive to regional demand and can be deployed to new plays anywhere in North America within one week to serve customer requirements. In particular, the safety and environmental advantages of the Poseidon approach are becoming increasingly attractive to producers having very large fluid requirements and seeking an economic alternative to conventional steel tanks and lined pits.

Exiting an extended spring break-up period that caused weather-related delays in western Canada, overall fleet utilization in mid-July is approximately 70 percent and rising as producers are beginning to accelerate field activities.

The Company anticipates continued growth in demand and is manufacturing additional tank systems with a view to growing the combined fleet to approximately 150 tanks by the end of the third quarter of 2011.

Open Range intends to update its 2011 guidance for the Poseidon Concepts business unit along with its financial and operating results for the six months ended June 30, 2011, which will be released in early August.

Reader Advisory

This news release contains certain forward-looking statements, which include assumptions with respect to (i) demand for Poseidon Concepts' tank systems and the corresponding utilization rate; and (ii) general oil and gas industry activity. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Open Range's control. Such risks and uncertainties include, without limitation, risks associated with the manufacture and supply of fracturing fluid handling systems, marketing and transportation, loss of markets, volatility of commodity prices, currency and interest rate fluctuations, environmental risks, competition from other fluid handling system suppliers, inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, as well as stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof. Open Range's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, Open Range will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Open Range or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Additional information on the foregoing risks and other factors that could affect Open Range's operations and financial results are included in the Company's annual information form and other reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Open Range does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE INFORMATION CONTAINED HEREIN.

Contact Information

  • Open Range Energy Corp.
    A. Scott Dawson, P.Eng.
    President and Chief Executive Officer
    403-205-3704

    Open Range Energy Corp.
    Lyle D. Michaluk, CA
    Vice President, Finance and Chief Financial Officer
    403-262-9280
    www.openrangeenergy.com