CALGARY, Nov. 23, 2011 /CNW/ - IROC Energy Services Corp. ("IROC" or the
"Corporation") (TSXV: "ISC") is pleased to announce the Board of
Directors has initially approved $21 million for capital spending for
2012. The bulk of the new equipment will be built and deployed to meet
existing demand in our service rig and rental divisions. A strong
balance sheet and excess free cash flow will allow IROC a great deal of
flexibility in dealing with additional opportunities for growth as they
develop during the first half of 2012.
Eagle Well Servicing
Eagle Well Servicing ("Eagle") is IROC's largest operating
division. Eagle started 2011 with 36 rigs and expects to exit 2011 with
43 rigs. For 2012, the Corporation has budgeted $12.5 million for an
additional 5 service rigs, with the first rig expected to be delivered
at yearend and the remaining 4 service rigs currently scheduled for
delivery during the first half of 2012. This will bring our currently
planned fleet configuration to 47 service rigs, consisting of 22
singles, 22 doubles, 1 heavy double, and 2 slant rigs. Building slots
for the 5 additional service rigs have been secured and the Corporation
has started to commit to capital expenditures relating to these new
service rigs. These 5 new service rigs were previously announced in our
news release dated October 25, 2011.
Aero Rental Services
With the increase in drilling and field service activity in the last 12
months, IROC's rental services division remains strong and continues to
grow. For 2012, the Corporation has approved $8.0 million for Aero to
continue increasing its rental assets through targeted equipment
purchases aimed at meeting current or anticipated customer demand,
primarily in our core competency of pressure control.
Helix Coil Services
Helix Coil Services began operations in July 2011 with the deployment of
two truck mounted units, each with 2" capabilities placing the
equipment in the intermediate size range. We have also added one
trailer unit with 2" capabilities along with pumping and crane support
equipment. The coil operation is very complementary to our other
service lines and, as expansion opportunities present themselves, we
will not hesitate to act upon them. However, at this time we have made
no specific capital allocations or budget for this division.
Maintenance Capital
In addition to the capital additions noted above, the Corporation has
approved $0.5 million for other miscellaneous capital expenditures,
including IT infrastructure and maintenance capital. At current
operating levels, the Corporation is anticipated to fund spending on
all budgeted capital expenditures through operating cash flow and
existing credit facilities.
Acquisitions
The Corporation has a capacity for greater capital expenditures than are
currently being planned and the Corporation will be actively seeking
other opportunities for growth through targeted asset or business
acquisitions engaged in our existing or highly complementary
businesses.
About IROC Energy Services Corp.
IROC Energy Services Corp. is an Alberta oilfield services company that,
through the IROC Energy Services Partnership, provides a diverse range
of products, services and equipment to the oil and gas industry that is
among the newest and most innovative in the WCSB. IROC Energy Services
Partnership operates under the business names of Eagle Well Servicing,
Aero Rental Services and Helix Coil Services. IROC combines
cutting-edge technology with depth of experience to deliver a product
and services offering in the following core areas: well servicing &
equipment, rental services and coil tubing services. For more
information on IROC Energy Services Corp., visit our website at www.iroccorp.com.
Cautionary Statement Regarding Forward Looking Information and
Statements
Certain information contained in this news release, including
information related to the Corporation's level of utilization, future
capital expenditures, anticipated equipment counts and information or
statements that contain words such as "forecasted", "could", "should",
"can", "anticipate", "expect", "believe", "will", "may", "likely",
"estimate", "predict", "potential", "continue", "maintain", "retain",
"grow", 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. This
information or these statements are based on certain assumptions and
analysis made by the Corporation 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, and the statements contained in this news release
speak only as of the date hereof.
Whether actual results, performance or achievements will conform to the
Corporation'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 the Corporation's expectations. Such
risks and uncertainties include, but are not limited to: fluctuations
in the price and demand for oil and natural gas; fluctuations in the
level of oil and natural gas exploration and development activities;
fluctuations in the demand for well servicing and ancillary oilfield
services; capital market liquidity available to fund oil and gas
exploration and development programs; the effects of seasonal and
weather conditions on operations and facilities; the highly
competitive operating environment inherent in well servicing and
ancillary oilfield services; general economic, market or business
conditions; changes in laws or regulations; the availability of
qualified operational and management personnel; currency exchange and
interest rate fluctuations; uncertainties associated with regulatory
approvals; uncertainty of government policy changes; uncertainties
associated with credit facilities and counterparty credit risk; changes
in income tax laws or changes in tax laws, crown royalty rates and
incentive programs relating to the oil and gas industry; risks
associated with government regulations and environmental health and
safety matters; and other unforeseen conditions which could impact the
use of equipment and services supplied by IROC.
Consequently, all of the forward-looking information and statements made
in this news release are qualified by this cautionary statement and
there can be no assurance that the actual results will be
realized. Except as may be required by law, the Corporation assumes no
obligation to update publicly any such forward-looking information and
statements, whether as a result of new information, future events, or
otherwise.
Other
This press release is not for dissemination in United States or to any
United States news services. The Common Shares of IROC have not and
will not be registered on the United States Securities Act of 1933, as amended (the "United States Securities Act") or any state securities laws and are not offered or sold in the
United States or to any US person except in certain transactions exempt
from the registration requirements of the United States Securities Act and applicable state securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
