CALGARY, Dec. 8, 2011 /CNW/ - Secure Energy Services Inc. ("Secure" or the "Corporation") (TSX:SES) is pleased to announce its 2012 capital budget.
Secure's Board of Directors has approved a preliminary 2012 capital budget of $116 million. This capital budget is largely focused on growth capital in key market areas in the Processing Recovery and Disposal ("PRD") division as well as the Drilling Services division. The capital budget also includes capital required to expand existing facilities in the PRD division.
The PRD divisions' 2012 capital budget is $98 million comprising $80 million for growth capital, $16 million for expansion of existing facilities and $2 million for sustaining capital. The growth capital includes the construction of two full service terminals ("FST"), two landfills and one standalone water disposal facility ("SWD"). The SWD will be constructed at Wild River, Alberta, where the Corporation currently operates a temporary SWD which is 70 kms NE of Hinton, Alberta. The Corporation anticipates Wild River to be completed in the third quarter of 2012 and the remaining facilities in late fourth quarter of 2012. All of the above facilities are currently in various phases of regulatory approval.
The Drilling Services divisions' 2012 capital budget totals $18 million comprising $14 million for growth capital, $2 million for expansion of existing facilities and $2 million for sustaining capital. The growth capital is allocated evenly between Canadian and U.S. operations and is largely comprised of onsite solid's control equipment.
Secure's 2012 capital budget is representative of the Corporation's aggressive expansion plans to invest in organic growth opportunities, recycling services and complimentary services at existing FST locations. The Corporation intends to fund the 2012 capital budget with cash flow from operations and the Corporation's credit facility. Consistent with the Corporation's approach to capital spending, Secure will respond accordingly to market dynamics and manage its expenditures to maintain its balance sheet strength in the future.
The Corporation is pleased to announce that its Drayton Valley FST is fully operational. Located 15 kms east of Drayton Valley, the facility is strategically located and well positioned with respect to the resurgence in Cardium oil development.
Date of release of Fourth Quarter and 2011 Year End results
Secure intends to release its Fourth Quarter and 2011 Year End results on Monday March 5, 2012 after the close of the market.
ABOUT SECURE ENERGY SERVICES INC.
Secure is a TSX publicly traded energy services company that focuses on providing specialized services to upstream oil and natural gas companies operating in the Western Canadian Sedimentary Basin.
The Corporation operates two divisions:
Processing, Recovery and Disposal Division ("PRD"): Operating under the trade name Secure Energy Services, the processing, recovery and disposal services division focuses on clean oil terminalling, custom treating of crude oil, crude oil marketing, produced and waste water disposal, oilfield waste processing, landfill disposal and oil purchase/resale service.
Drilling Services Division: Operating under the trade names Marquis Alliance and XL Fluids, the drilling services division focuses on drilling fluid systems, solids control, equipment rental service, drilling waste management and environmental services. The drilling fluids service line includes the design and implementation of drilling fluid systems for producers drilling for oil, bitumen and natural gas.
Certain statements contained in this document constitute "forward-looking statements" within the meaning of securities laws, including the "safe harbor" provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", and similar expressions, as they relate to Secure, or its management, are intended to identify forward-looking statements. Such statements reflect the current views of Secure with respect to future events and operating performance and speak only as of the date of this document. This document contains forward-looking statements pertaining to the 2012 preliminary capital budget, the type of facilities to be constructed with growth capital and commencement of the permanent facility construction at Wild River and the intended funding of the 2012 capital program.
Forward-looking information concerning expected operating and economic conditions are based upon prior year results as well as assumptions that increases in market activity and growth will be consistent with industry activity and growth levels in similar phases of previous economic cycles. Forward-looking information concerning the availability of funding for future operations is based upon assumptions that sources of funding which the Corporation has relied upon in the past will continue to be available to the Corporation on terms favorable to the Corporation and that future economic and operating conditions will not limit the Corporation's access to debt and equity markets. Forward-looking information concerning the relative future competitive position of the Corporation is based upon assumptions that economic and operating conditions, including commodity prices, crude oil and natural gas storage levels, interest rates, the regulatory framework regarding oil and natural gas royalties, environmental regulatory matters, the ability of the Corporation to successfully market its services and drilling and production activity in the Western Canadian Sedimentary Basin will lead to sufficient demand for the Corporation's services, that the current business environment will remain substantially unchanged, and that, present and anticipated programs and expansion plans of other organizations operating in the energy service industry will result in increased demand for the Corporation's services. Forward-looking information concerning the nature and timing of growth is based on past factors affecting the growth of the Corporation, past sources of growth and expectations relating to future economic and operating conditions. Forward-looking information in respect of the costs anticipated to be associated with the acquisition and maintenance of equipment and property are based upon assumptions that future acquisition and maintenance costs will not significantly increase from past acquisition and maintenance costs.
Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether such results will be achieved. We caution readers not to place undue reliance on these statements as a number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, including but not limited to those factors referred to and under the heading "Risk Factors" in the Corporation's annual information form "AIF" for the year ended December 31, 2010 and the Corporation's short form prospectus filed May 6, 2011. Although forward-looking statements contained in this document are based upon what the Corporation believes are reasonable assumptions, the Corporation cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements in this document are expressly qualified by this cautionary statement. Unless otherwise required by law, Secure does not intend, or assume any obligation, to update these forward-looking statements.