Trican Well Service Ltd.
TSX : TCW

Trican Well Service Ltd.

December 17, 2008 18:51 ET

Trican Announces 2009 Capital Budget, Financing Update and Executive Appointments

CALGARY, ALBERTA--(Marketwire - Dec. 17, 2008) - Trican Well Service Ltd. (TCW) (TSX:TCW) is pleased to announce our 2009 capital budget, provide a financing update and announce executive appointments.

2009 Capital Budget

Trican's Board of Directors has approved the 2009 Capital Budget of $27 million. This is a conservative capital budget focusing on maintaining our current operating capabilities and includes relatively minor expansion capital dedicated to key growth areas for Trican.

The Canadian operations' 2009 capital budget totals $11.9 million and comprises $8.2 million in infrastructure and maintenance capital and $3.7 million in expansion capital. The expansion capital will be primarily directed to growth in our Industrial Services group and infrastructure in the Horn River Basin.

The Russian operations' 2009 capital budget totals $3.5 million and largely comprises infrastructure and maintenance capital expenditures.

The US operations' 2009 capital budget totals $11.6 million and comprises $6.2 million in expansion capital and $5.4 million in infrastructure and maintenance capital. The expansion capital will be directed towards the growth of the cementing service line with the addition of two pumping units and related capital expenditures.

The significant decrease in Trican's 2009 capital budget relative to prior years demonstrates management's continued commitment to maintaining a strong balance sheet in an uncertain economic environment. Consistent with our past practice, Trican will continue to monitor the global economic and operating environment, as well as evaluate opportunities to prudently adjust its capital budget in the future.

Financing Update

On November 17, 2008, Trican's US subsidiary entered into a US$30 million demand revolving facility with a large international bank. This facility is unsecured, bears interest at Bank Prime plus 0.25% or LIBOR plus 1.50% and is subject to covenants that are typical of this type of arrangement.

On November 28, 2008, Trican's Russian subsidiary entered into a US$20 million demand revolving facility with a large international bank. This facility is unsecured, bears interest at Bank Prime plus 2.75% and is subject to covenants that are typical of this type of arrangement.

On December 17, 2008, the $30 million (or US dollar equivalent) operating credit facility was increased to $35 million and bears interest at Bank Prime plus 0.5% to 1.25% or at LIBOR plus 1.5% to 2.25%, dependent on certain financial ratios. Other than the facility amount and interest rate, terms of this facility are unchanged.



A summary of Trican's current debt facilities are as follows:

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Facility Debt Available
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Demand Operating Credit Facility CAD$35 million
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US Operations Demand Revolving USD
Facility (USD$30 million) CAD$36.9 million
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Russian Operations Demand Revolving
USD Facility (USD$20 million) CAD$24.6 million
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Revolving Acquisition and Capital
Expenditure Term Facility CAD$120 million
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Total Debt Available CAD$216.5 million
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Currently, Trican's $35 million operating credit facility is undrawn and approximately CAD$45 million in cash is on hand. Management is of the opinion that Trican's current unused debt capacity and cash on hand will provide sufficient capital to meet all of our financing needs through the end of 2009.

Executive Appointments

On November 24, 2008 the following promotions took effect: Michael G. Kelly to Senior Vice President and CFO; Bonita Croft to Vice President Legal, General Counsel and Corporate Secretary; Robert Cox to Vice President of the Canadian Geographic Region; and Steven Redmond to Vice President H.R. / H.S. & E.

Trican is pleased to report that on November 19, 2008, Michael A. Baldwin rejoined Trican in the position of Vice President, Finance. Mr. Baldwin is a senior finance professional with 11 years of experience in the well service industry.

Headquartered in Calgary, Alberta, Trican has operations in Canada, Russia, the US and North Africa. Trican provides a comprehensive array of specialized products, equipment and services that are used during the exploration and development of oil and gas reserves.

Contact Information

  • Trican Well Service Ltd.
    Murray Cobbe
    President and CEO
    (403) 266-0202
    Email: mcobbe@trican.ca
    or
    Trican Well Service Ltd.
    Michael Kelly
    Senior Vice President and CFO
    (403) 266-0202
    Email: mkelly@trican.ca
    or
    Trican Well Service Ltd.
    Michael Baldwin
    Vice President Finance
    (403) 266-0202
    Email: mbaldwin@trican.ca
    or
    Trican Well Service Ltd.
    2900, 645 - 7th Avenue S.W.
    Calgary, Alberta T2P 4G8
    (403) 237-7716 (FAX)
    Website: www.trican.ca