Oil States Sets Budget to Expand Oil Sand Ops
Oil States has approved capital expenditures to expand its accommodations operations in the oil sands region of northern Alberta, Canada. The Board authorized the Company's Canadian subsidiary, PTI Group Inc. ("PTI"), to spend additional capital totaling approximately US $62 million to expand three existing facilities, the PTI Athabasca Lodge, the PTI Beaver River Executive Lodge and the PTI Conklin Lodge, by 796 rooms and to purchase 132 leased rooms currently installed at the PTI Conklin Lodge.
PTI Athabasca Lodge and the PTI Beaver River Executive Lodge are located north of Fort McMurray, Alberta, in the heart of the oil sands developments. Upon the completion of the expansion plans in the fourth quarter of 2011, the Athabasca Lodge will have 1,965 rooms. After the expansion is complete, the Beaver River Executive Lodge, adjacent to the PTI Athabasca Lodge, will have 876 rooms, providing executive level accommodations for middle and upper management working in the oil sands region.
PTI's Conklin Lodge, located South of Fort McMurray, provides full scope accommodations with dorm style, private and executive suite style rooms. Upon the completion of the expansion plans in the fourth quarter of 2010, the Conklin Lodge will have a total of 832 rooms. The Conklin Lodge provides first class accommodations for many of the growing SAGD developments in the southern Athabasca oil sands region.
All of the oil sands lodges provide PTI's full suite of first-class accommodations and services including catering, ancillary and convenience services, internet service, conference rooms and leisure facilities for fitness, entertainment and relaxation.
"PTI is excited about the expansion of its oil sands operations," stated Ron Green, PTI's President and Chief Executive Officer. "We have been active partners to oil sands developers for over twenty years. With the competitive labor market in Canada, providing superior accommodations for personnel can be a competitive advantage in securing and retaining talented tradesmen."
"Our accommodations business gives Oil States a significant exposure to oil sands activity which is unique for an oilfield services company," stated Cindy B. Taylor, Oil States' President and Chief Executive Officer. "Over the past five years, we have organically grown our oil sands presence into the largest third party provider of accommodations in the region. With our four major lodges and our mobile camp fleet, we are well positioned to serve our customers' changing and growing accommodations needs."
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