Pure Energy Services Ltd.
TSX : PSV

Pure Energy Services Ltd.

December 18, 2006 17:05 ET

Pure Energy Services Ltd. Announces 2007 Capital Program and 2006 and 2007 Projected Revenues

CALGARY, ALBERTA--(CCNMatthews - Dec. 18, 2006) - Pure Energy Services Ltd. (TSX:PSV) ("Pure") announced today that it has approved a capital budget of $13.7 million for 2007. The 2007 capital expenditures program largely reflects sustaining capital for Pure's existing business operations. Given current uncertainties in industry conditions and expected industry activity for 2007, Management believes that it is prudent to approve a conservative capital expenditure program at this time. Management will continue to review its capital expenditure program for 2007 in light of industry activity during 2007.

The 2007 capital expenditures will be funded from cash flow from operations and credit facilities available to Pure.

Pure also announced today its projected revenues for its 2006 and 2007 fiscal years. Revenues for its 2006 fiscal year are projected to be approximately $136 million and revenues for its 2007 fiscal year are projected to be approximately $193 million. Increased revenues reflect the introduction and implementation of the equipment provided for in Pure's 2006 capital expenditure program.

Further information can be obtained by reviewing Pure's December, 2006 Investor Presentation, which can be accessed on Pure's website: www.pure-energy.ca under the headings "Investor Relations", "Conference Calls and Presentations". Copies of this presentation can be obtained directly from Pure by contacting the personnel listed below.

Pure Energy is an oilfield services company that provides completion and drilling related services to oil and gas exploration and development entities in the Western Canadian Sedimentary Basin ("WCSB") and, through its wholly-owned subsidiary, Pure Energy Services (USA), Inc., in the Rocky Mountain region of the United States.

Pure Energy currently provides logging and perforating, production testing, multiline, drilling, drilling rental and pressure transient analysis services to customers in the WCSB, and also provides production testing, logging and perforating, and fracturing services to customers in the Rocky Mountain region.

Certain statements in this press release, including the revenue projections outlined herein, may constitute "forward-looking information" which involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Pure, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this press release, such information uses such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate" and other similar terminology. This information reflects Pure's current expectations regarding future events and operating performance and speaks only as of the date of this press release. Forward-looking information involves significant risks and uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, including, but not limited to, the factors discussed below. Although the forward-looking information contained in this press release is based upon what management of Pure believes are reasonable assumptions, Pure cannot assure investors that actual results will be consistent with this forward-looking information. This forward-looking information is provided as of the date of this press release, and, subject to applicable securities laws, Pure assumes no obligation to update or revise such information to reflect new events or circumstances.

Pure's actual results could differ materially from those anticipated in the forward-looking information as a result of the following factors: general economic conditions in Canada and the United States; demand for oilfield services during drilling and completion of oil and natural gas wells; volatility in market prices for oil and natural gas and the effect of this volatility on the demand for oilfield services generally; competition; liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations; sourcing, pricing and availability of raw materials, consumables, component parts, equipment, suppliers, facilities, and skilled management, technical and field personnel; ability to integrate technological advances and match advances of competition; availability of capital; uncertainties in weather and temperature affecting the duration of the oilfield service periods and the activities that can be completed; changes in legislation and the regulatory environment, including uncertainties with respect to implementing the Kyoto Protocol; and the other factors considered under "Risk Factors" in Pure Energy's Annual Information Form dated March 10, 2006 which is available under the Pure Energy's profile at www.sedar.com.

Contact Information

  • Pure Energy Services Ltd.
    Kevin Delaney
    President and CEO
    (403) 262-4000
    (403) 262-4005 (FAX)
    Email: kdelaney@pure-energy.ca
    or
    Pure Energy Services Ltd.
    Michael Baldwin
    Chief Financial Officer
    (403) 262-4000
    (403) 262-4005 (FAX)
    Email: mbaldwin@pure-energy.ca
    or
    Pure Energy Services Ltd.
    #300, 1010 - 1st Street S.W.
    Calgary, Alberta T2R 1K4
    Website: www.pure-energy.ca