Trican Well Service Announces 2006 Capital Budget
Trican Well Service announces its capital budget for 2006. Based on expected continued strong demand for the Company's services next year, the Board of Directors has approved equipment expansions for both our Canadian and Russian operations. In Canada, our equipment expansion will be focused on enhancing our cementing and fracturing service capabilities in the deep highly technical areas of the Western Canadian Sedimentary Basin as well as continuing to balance our other service capabilities. We will also be adding additional pumping capacity to our CBM fleet which will allow us to more effectively perform larger volume higher rate jobs which are increasingly being requested by our customers.
Canadian Operations 2006 Capital Expansion Current Planned Expected Fleet Size (1) Additions Fleet Size ---------------- ----------- ------------ Well Service Fracturing Crews Conventional 15 3 18 CBM 4 0 4 Cement Pumpers 50 7 57 Deep Coiled Tubing Units 16 6 22 Nitrogen Units 22 8 30 Production Services Acidizing Units 12 1 13 (1) - includes units currently in operation and under construction
Trican will also be making an additional investment in infrastructure and auxiliary equipment to support these new units bringing the total planned capital budget for the Canadian operations for 2006 to $131 million. All of the new equipment is expected to be in the field by late in the third quarter or early in the fourth quarter of 2006. However currently there is a major build-out of equipment ongoing in North America which could delay some of the equipment beyond expected delivery dates. Management will continue to monitor construction timeframes.
Russian Operations 2006 Capital Expansion Current Planned Expected Fleet Size (1) Additions Fleet Size ---------------- ----------- ------------ Well Service Fracturing Crews Conventional 6 2 8 Cement Pumpers 3 0 3 (1) - includes units currently in operation and under construction
Trican also plans to continue expand its operations in Russia. Our Russian subsidiary has been awarded a work contract with a major new strategic customer in western Siberia. The Company was recently awarded a fracturing contract to perform more than 200 fracturing treatments with an expected value in excess of US $60 million. To meet the needs of this contract, the Company will add one additional fracturing crew to operations in January 2006 and open a new base of operations. To meet the growing demand for fracturing services expected in 2006 another crew will be added by mid-year. The addition of this new customer is a significant development for our operations in Russia and will require additional investment in equipment as well as infrastructure to support operations. To facilitate this growth, the total planned capital budget for 2006 is expected to be $22.5 million.
These are planned expenditures based on activity levels expected by the Company in 2006. The Company recognizes that these plans may be changed if expected activity levels change.
Headquartered in Calgary, Alberta, Trican's principal operations are in Canada; however, the Company also has growing operations in Russia. The Canadian operations are conducted through bases in British Columbia, Alberta and Saskatchewan, and provide services to customers across the entire Western Canadian Sedimentary Basin (WCSB). International operations are conducted through bases in Tyumen region of western Siberia in the towns of Raduzhny, Nefteugansk and Nyagan in Russia. Trican provides a comprehensive array of specialized products, equipment and services that are used by exploration and production companies during the exploration and development of oil and gas reserves.
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