CALGARY, Dec. 10, 2010 /CNW/ - Secure Energy Services Inc. ("Secure" or the "Corporation") (TSX:SES) is pleased to announce its 2011 Capital Budget.
Secure's Board of Directors has approved a preliminary 2011 Capital Budget of $55 million. This capital budget is comprised of capital projects initiated in 2010 and facility expansions at existing locations.
A total of $25 million is related to 2010 carry over capital associated with the construction of the Drayton Valley Full Service Terminal ("FST"), Brazeau Stand Alone Water Disposal Well ("SWD") and the Phase II waste treatment and disposal expansion at the existing South Grande Prairie SWD Facility. The Drayton Valley FST is expected to be operational in the third quarter of 2011, while the Brazeau and expanded South Grande Prairie facilities are forecast to be operational in the second quarter of 2011.
Expansion and sustaining capital of $30 million is related to increasing throughput capacity and the introduction of new services at the Corporation's existing facilities. Capacity will be enhanced through additional disposal wells, pipeline connections, upgraded metering systems and additional truck unload infrastructure. New services will be added to existing locations in late 2011.
Secure's 2011 Capital Budget is a continuation of the Corporation's aggressive expansion plans into under-serviced and capacity constrained markets. In addition to the approved 2011 Capital Budget, the Corporation is evaluating several opportunities and is prepared to invest up to an additional $50 million on new locations. Growth will be focused on western Canadian markets experiencing strong demand for the Secure's services in oil and liquids rich natural gas areas. The Corporation intends to fund all 2011 capital with existing cash and expected available debt combined with 2011 forecasted cash flow from operations.
Secure is also pleased to announce the completion of the Phase II expansion at its Dawson Creek location. Situated in north-east British Columbia, the facility is located in the centre of the Montney unconventionnal shale natural gas play. Originally built as a SWD facility (Phase I), customer demand accelerated the expansion of services to include waste processing/disposal and crude oil treating (Phase II). Commissioning of the facility began in late November and operations commenced in early December.
Date of release of Fourth Quarter and 2010 Year End results
Secure intends to release its Fourth Quarter and 2010 Year End results on Thursday March 3, 2011 after the close of the market.
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. In particular, this document contains forward-looking statements pertaining to: 2011 preliminary capital budget, dates of operation of new and expanded facilities, plans for expansion of facilities, new services and intended funding of the 2011 capital program.
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 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 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 cost 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. 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 under the heading "Risk Factors" in the Corporation's AIF for the year ended December 31, 2009.
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.