Savanna Energy Completes Rig Sale
Savanna Energy Services says that Alexander First Nation has purchased a 50% interest in a 3,600 meter telescoping double drilling rig from Western Lakota Energy Services Inc., a wholly owned subsidiary of Savanna. The proceeds of sale will consist of a combination of promissory notes totaling $5,250,000 of which $2,250,000 is expected to be repaid within the next month. As such, a portion of the revenue and cost of sales will be deferred until Alexander First Nation pays the remainder of the promissory notes.
The rig will be operated through a limited partnership equally owned by Alexander First Nation and Western Lakota, representing the seventh partnership currently operating between Western Lakota and a First Nation. This partnership is one of thirty-two Aboriginal community business relationships in which the Company is engaged.
The drilling rig is in the final stages of completion and is expected to be operating in September 2006. This transaction reflects the continuing focus on Aboriginal partnerships within the newly merged Company.
Savanna Energy Services currently operates 79 drilling rigs, 35 wireline
units, 22 service rigs and 5 coil tubing service units. After completing the
2006 construction plan, the Company will operate 103 drilling rigs,
37 wireline units, 22 service rigs and 8 coil tubing service units,
entrenching itself as a leading energy services provider in North America,
focused on delivering strong results for shareholders, customers and partners.
- Savanna Inks $63.4M Rig Supply Deal for Australia's East Coast LNG Project (Oct 23)
- Savanna Updates on Mexico Ops (Jul 01)
- Savanna Energy Services Mobilizes 4 Rigs to Chicontepec Region (Jul 01)
Company: Western Lakota Energy Services more info
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