Trican Well Service Ltd.
TSX : TCW

Trican Well Service Ltd.

January 12, 2011 19:21 ET

Trican Announces Eagleford and Marcellus Shale Contracts

CALGARY, ALBERTA--(Marketwire - Jan. 12, 2011) - Trican Well Service Ltd. ("Trican") (TSX:TCW) is pleased to announce that its U.S. subsidiary, Trican Well Service, L.P. ("the US Operations"), has expanded its fracturing operations into the Eagleford Shale play by committing a 40,000 Horsepower ("HP") fracturing crew to a two-year minimum commitment contract with a major U.S. customer operating in the play. Work under this contract is expected to commence early in the second quarter of 2011. Expansion into the Eagleford Shale increases the US Operations' presence in an area that is experiencing a significant increase in fracturing activity due to the wells largely being directed at liquids-rich targets. 

Trican has also entered into a second two-year minimum commitment contract for the provision of fracturing services to a second major U.S. customer operating in the Marcellus Shale play. This contract expands the US Operations horsepower capacity in the Marcellus to approximately 85,000 HP. Work under this contract is expected to commence late in the second quarter or early in the third quarter of 2011. The contract is further evidence of the strength in current fracturing activity ongoing in the Marcellus Shale. Management continues to believe that the Marcellus will continue to experience robust activity levels during 2011 due to the fact that it is a large, low cost reservoir that is close to the large eastern US natural gas consuming market. 

Approximately 67% of the horsepower currently operating in the US is committed to long term work arrangements. As a result of these two contracts, approximately 55% of the anticipated capacity of 548,000 HP for our US Operations will be committed to long term work arrangements by the end of 2011. Management believes the finalization of these contracts is an indicator of the strong customer demand currently being experienced in the US market and is supportive of our aggressive 2011 capital budget expansion.

Forward Looking Statement Disclaimer

This press release contains forward-looking statements, including, but not limited to, statements regarding the expected commencement dates for work under the Eagleford and Marcellus contracts, respectively, activity levels in the Marcellus Shale in 2011, and anticipated capacity levels for our US Operations.

These forward-looking statements are based on Trican's current assumptions and beliefs. However, these forward-looking statements are subject to, and may be affected by, numerous risks and uncertainties, some of which are beyond Trican's control. Trican's results may differ from those expressed in, or implied by, such statements. Factors that could cause or contribute to these differences include: fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials and other factors described in Trican's pubic reports and filings, which are available under Trican's profile at www.sedar.com. Forward-looking statements are subject to change, and Trican does not undertake to update, correct or revise any forward-looking statements as a result of any new information, future events or otherwise, except as may be required by applicable law. 

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.

Requests for shareholder information should be directed to the contacts below.

Contact Information

  • Trican Well Service Ltd.
    Dale Dusterhoft
    Chief Executive Officer
    (403) 266-0202
    (403) 237-7716 (FAX)
    ddusterhoft@trican.ca
    or
    Trican Well Service Ltd.
    Michael Baldwin
    Vice President, Finance and Chief Financial Officer
    (403) 266-0202
    (403) 237-7716 (FAX)
    mbaldwin@trican.ca
    or
    Trican Well Service Ltd.
    2900, 645 - 7th Avenue S.W.
    Calgary, Alberta T2P 4G8
    www.trican.ca