Savanna Energy Services Corp.

Savanna Energy Services Corp.

September 07, 2010 18:17 ET

Savanna Energy Mexico Operations Update

CALGARY, ALBERTA--(Marketwire - Sept. 7, 2010) - Savanna Energy Services Corp. ("Savanna") (TSX:SVY) has received formal notification from its customer, a global integrated oilfield services company, regarding its 2 remaining drilling rigs in Chicontepec Mexico. Savanna's customer has advised that it has received operator notification that drilling under the contract pursuant to which Savanna's customer has been operating, has been suspended through at least December 31, 2010. Based on this, the customer has advised Savanna that they will be releasing both of the remaining drilling rigs immediately.

As a result of this reduction, the customer will demobilize the 2 released rigs, at their cost, to McAllen, Texas as soon as possible.

Savanna has initiated efforts to transfer the released rigs to other operating areas in North America, and anticipates that the rigs will be quickly redeployed. Given the depth capacity and efficiency of these 1200HP AC rigs, Savanna expects limited downtime on this equipment, however the rigs currently are uncommitted.

Savanna will be winding down operations at its temporary base in Mexico and redeploying expatriate personnel to other divisions or operating areas.

This announcement has no impact on Savanna's current 2010 capital expansion program, nor any material affect on its ability to fund same. Savanna will address its 2011 capital requirements in light of the availability of these rigs to address demand for deep, high specification doubles in other geographical operating areas.

Savanna is a leading contract drilling and oilfield services company providing a broad range of drilling, well servicing and related services with a focus on fit for purpose technologies for key North American and international drilling markets and industry-leading Canadian 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. Specifically, this press release contains statements regarding Savanna's expectation of rig redeployment and impact on Savanna's capital expansion program and funding of same. These statements are based on certain assumptions and analysis made by Savanna in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, whether actual results, performance or achievements 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 to differ materially from Savanna's expectations. 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 developments anticipated by Savanna will be realized or, even if substantially realized, that they will have the expected consequences to or 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.

Contact Information

  • Savanna Energy Services Corp.
    Ken Mullen
    President & Chief Executive Officer
    (403) 503-9990
    (403) 267-6749 (FAX)
    Savanna Energy Services Corp.
    Dwayne LaMontagne
    Executive Vice President & Chief Development Officer
    (403) 503-9990
    (403) 267-6749 (FAX)