Pure Energy Services Ltd.
TSX : PSV

Pure Energy Services Ltd.

September 09, 2008 18:55 ET

Pure Energy Services Ltd. Announces Additions to Its 2008 Capital Program

CALGARY, ALBERTA--(Marketwire - Sept. 9, 2008) - Pure Energy Services Ltd. (TSX:PSV) ("Pure Energy") announced today that it has approved an increase of $19.1 million to its 2008 capital budget. Of these additions, $9.2 million relates to Pure Energy's US Completion Services segment, $3.3 million relates to its Canadian Completion Services segment and $5.5 million relates to its Drilling Services segment.

The additional capital expenditures will be funded from cash flow from operations and Pure Energy's existing credit facilities.

For the US Completion Services segment, three pumpers and one hydration unit will be added to the equipment complement for the Fracturing division. This equipment is being added to provide the additional pumping capacity requested by Pure Energy's customers for larger fracturing jobs.

The approved capital expenditures also include the addition of one high stage production testing unit and associated equipment for the US Production Testing division. One low pressure production testing unit and two logging and perforating units are also being transferred from Pure Energy's Canadian operations to US operations. The additional capital expenditures and equipment transfers address increased customer demand for flowback/production testing and logging and perforating services in the US Rocky Mountain region.

After these transfers and the additional capital expenditures, the equipment complement of Pure Energy's US operations will consist of 35 production testing units, five logging and perforating units and three fracturing spreads.

For the Canadian Completion Services segment, the approved capital expenditures include the acquisition of three high pressure production testing units (and personnel) from a competitor. These units will be stationed in Fort St. John, B.C. The approved capital expenditures also include additional tools and equipment for Pure Energy's Canadian Logging and Perforating and Multiline divisions to allow for the expansion of service capabilities for these divisions. A logging and perforating derrick unit will be transferred to Fort St. John, B.C. This unit, together with the approved capital expenditures, will be used to expand Pure Energy's logging and perforating services in the Fort St. John area.

Capital expenditures for the Drilling Services segment include the conversion of one of Quintera Drilling division's existing single drilling rigs to a 2,800 meter double rig. The converted rig has been contracted for the 2008/9 winter drilling season. The capital expenditures also include additional equipment for the continued expansion of Pure Energy's directional drilling operations in both Canada and the United States.

The additional capital expenditures and equipment transfers are consistent with Pure Energy's continued focus on increasing its complement of services for unconventional oil and gas plays in both Canada and the United States. Currently, approximately 60% of Pure Energy's revenues are derived from services for unconventional oil and gas plays in both Canada and the United States. The majority of this revenue is derived from the United States.

Pure Energy also announced that its current investor presentation has been posted on its website at www.pure-energy.ca.

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 and, through its wholly-owned subsidiary, Pure Energy Services (USA), Inc., in the Rocky Mountain region of the United States.

Certain statements in this press release 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 Energy, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. In particular, this press release may contain forward-looking information pertaining to the following: capital expenditure programs; financing of Pure Energy's activities including capital expenditures, and expansion of services in Canada and the United States. When used in this press release, such information uses such words as "may", "would", "could", "should" "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "forecast", "project" and other similar terminology. This information reflects Pure Energy'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 Energy believes are reasonable assumptions, Pure Energy 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, except to the extent required by applicable securities laws, Pure Energy assumes no obligation to update or revise such information to reflect new events or circumstances.

Pure Energy'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 legislated targets to reduce emissions; and the other factors considered under "Risk Factors" in Pure Energy's Annual Information Form dated March 19, 2008 which is available under 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
    Executive Vice-President
    (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