Precision Drilling Corporation Announces Four Kuwait Contract Awards
19 Ottobre 2022 - 2:30PM
Precision Drilling Corporation (“Precision” or the “Company”)
(TSX:PD; NYSE:PDS) is pleased to announce that it was recently
awarded four contracts in Kuwait, each with a five year term and an
optional one year renewal. The contract awards are for our AC Super
Triple 3000 HP rigs and increase our active rig count in Kuwait
from three rigs to five rigs by the middle of 2023.
In addition, we recently signed our third
drilling rig in the Kingdom of Saudi Arabia to a five year contract
extension, following two earlier five year contract signings in the
second quarter of this year. With the three contract extensions in
Saudi Arabia and the Kuwait contract awards, Precision will have
eight rigs under long-term contracts in the Middle East stretching
into 2028 and representing approximately US$600 million
(approximately C$820 million) in backlog revenue.
“Precision’s success in earning these contract
awards is a result of our team’s dedication and commitment to our
High Performance, High Value strategy and the outstanding service
we have delivered to customers in the Middle East region.
Furthermore, the recent contract awards allow us to leverage our
scale in the region and generate steady, reliable cash flow,
creating value for our shareholders and fulfilling one of
Precision’s 2022 strategic priorities to maximize our operational
leverage. I would like to congratulate our team for securing these
contracts and look forward to continuing the excellent service our
customers can expect from Precision,” commented Kevin Neveu,
Precision’s President and CEO.
CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS
Certain statements contained in this report,
including statements that contain words such as "could", "should",
"can", "anticipate", "estimate", "intend", "plan", "expect",
"believe", "will", "may", "continue", "project", "potential" and
similar expressions and statements relating to matters that are not
historical facts constitute "forward-looking information" within
the meaning of applicable Canadian securities legislation and
"forward-looking statements" within the meaning of the "safe
harbor" provisions of the United States Private Securities
Litigation Reform Act of 1995 (collectively, "forward-looking
information and statements").
In particular, forward-looking information and
statements include, but are not limited to, the following:
-
our strategic priorities for 2022; and
-
anticipated activity levels, demand for our drilling rigs and cash
flow.
These forward-looking information and statements
are based on certain assumptions and analysis made by Precision in
light of our experience and our perception of historical trends,
current conditions, expected future developments and other factors
we believe are appropriate under the circumstances. These include,
among other things:
-
the fluctuation in oil prices may pressure customers into reducing
or limiting their drilling budgets;
-
the success of our response to the COVID-19 global pandemic;
-
the status of current negotiations with our customers and
vendors;
-
customer focus on safety performance;
-
existing term contracts are neither renewed nor terminated
prematurely; and
-
our ability to deliver rigs to customers on a timely basis; and the
general stability of the economic and political environments in the
jurisdictions where we operate.
Undue reliance should not be placed on
forward-looking information and statements. Whether actual results,
performance or achievements will conform to our expectations and
predictions is subject to a number of known and unknown risks and
uncertainties which could cause actual results to differ materially
from our expectations. Such risks and uncertainties include, but
are not limited to:
- volatility in the price and demand
for oil and natural gas;
- fluctuations in the demand for
contract drilling, well servicing and ancillary oilfield
services;
- our customers’ inability to obtain
adequate credit or financing to support their drilling and
production activity;
- changes in drilling and well
servicing technology which could reduce demand for certain rigs or
put us at a competitive disadvantage;
- shortages, delays and interruptions
in the delivery of equipment supplies and other key inputs;
- the effects of seasonal and weather
conditions on operations and facilities;
- the availability of qualified
personnel and management;
- a decline in our safety performance
which could result in lower demand for our services;
- changes in environmental laws and
regulations such as increased regulation of hydraulic fracturing or
restrictions on the burning of fossil fuels and greenhouse gas
emissions, which could have an adverse impact on the demand for oil
and gas;
- terrorism, social, civil and
political unrest in the foreign jurisdictions where we
operate;
- fluctuations in foreign exchange,
interest rates and tax rates; and
- other unforeseen conditions which
could impact the use of services supplied by Precision and
Precision’s ability to respond to such conditions.
Readers are cautioned that the forgoing list of
risk factors is not exhaustive. Additional information on these and
other factors that could affect our business, operations or
financial results are included in reports on file with applicable
securities regulatory authorities, including but not limited to
Precision’s Annual Information Form for the year ended December 31,
2021, which may be accessed on Precision’s SEDAR profile at
www.sedar.com or under Precision’s EDGAR profile at www.sec.gov.
The forward-looking information and statements contained in this
news release are made as of the date hereof and Precision
undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, except as required by
law.
About PrecisionPrecision is a leading provider
of safe and environmentally responsible High Performance, High
Value services to the energy industry, offering customers access to
an extensive fleet of Super Series drilling rigs. Precision has
commercialized an industry-leading digital technology portfolio
known as “Alpha™” that utilizes advanced automation software and
analytics to generate efficient, predictable, and repeatable
results for energy customers. Additionally, Precision offers well
service rigs, camps and rental equipment all backed by a
comprehensive mix of technical support services and skilled,
experienced personnel.
Precision is headquartered in Calgary, Alberta,
Canada and is listed on the Toronto Stock Exchange under the
trading symbol “PD” and on the New York Stock Exchange under the
trading symbol “PDS.”
For further information, please contact:
Lavonne Zdunich, CPA, CADirector, Investor Relations
403.716.4500
800, 525 - 8th Avenue S.W.Calgary, Alberta,
Canada T2P 1G1Website: www.precisiondrilling.com
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