Calgary, Alberta--(Newsfile Corp. - September 13, 2021) - Trican Well Service Ltd. (TSX: TCW) ("Trican" or the "Company") is pleased to announce that it will expand its fleet of next generation, low emissions fracturing equipment by upgrading a second set of existing pumping equipment ("the fleet") with CAT Tier 4 dynamic gas blending ("DGB") engines. The conversion to Tier 4 DGB engines will provide industry leading reductions in emissions and lower fuel costs for our customers.
The Company will be upgrading 48,000 hydraulic horsepower ("HHP") from conventional diesel engines to the Tier 4 DGB engines, bringing Trican's total Tier 4 fleet to 84,000 HHP. The Tier 4 DGB engine displaces 85% of diesel with clean burning natural gas, reducing CO2 and particulate matter emissions. Combined with Trican's idle reduction technology, the fleet will lower overall fuel consumption and emissions, key components in Trican's commitment to Environmental, Social and Governance ("ESG") initiatives.
The Company is in advanced discussions with several customers on multi-year contracts that meet Trican's required return metrics. These customers have made commitments to improve the sustainability of their operations and see the deployment of Tier 4 DGB powered hydraulic fracturing fleet as a critical part of their strategy to achieve their ESG goals.
CAPITAL BUDGET UPDATE
The cost of the upgrade for the second low emissions fleet is expected to be approximately $28 million with $18 million in capital to be spent in 2021. Accordingly, the Company's 2021 capital budget has been increased to $58 million. The remaining $10 million will be incurred in 2022 with deployment of the equipment anticipated in the spring of 2022.
The Company anticipates that its capital program will be funded from cash on hand and free cash flow if required.
FORWARD-LOOKING STATEMENTS
Certain statements and other information contained in this press release constitute "forward-looking information" and/or "statements" within the meaning of applicable Canadian securities legislation (collectively "forward-looking statements"), including, but not limited to, statements regarding the timing for completion of the upgrades, performance of the Tier 4 engine technology and securing multi-year contracts that meet the Company's required return metrics. All statements in this press release other than those relating to historical facts or current conditions are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "estimate", "expect", "intend", "contemplate", "plan", "planned" "intend", "continue", "propose", "might", "may", "will", "shall", "project"', "should"', "could", "would", "believe", "predict", "forecast", "pursue", "potential", "capable", and other similar terms and phrases. These forward-looking statements involve known and unknown risks, uncertainties, and other factors (many of which are beyond our control) that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. We believe the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct. Therefore, the forward-looking statements included in this press release should not be unduly relied upon.
These forward-looking statements speak only as of the date of this news release. Except as required under applicable Canadian securities legislation, Trican disclaims any intention or obligation to update or revise any forward-looking statements in this press release as a result of new information, future events or otherwise.
Additional information regarding Trican, including Trican's most recent Annual Information Form, is available under Trican's profile on SEDAR (www.sedar.com).
ABOUT TRICAN
Headquartered in Calgary, Alberta, Trican provides a comprehensive array of specialized products, equipment and services that are used during the exploration and development of oil and gas reserves.
Requests for further information should be directed to:
Bradley P.D. Fedora
President and Chief Executive Officer
E-mail: investors@trican.ca
Scott Matson
Chief Financial Officer
E-mail: investors@trican.ca
Phone: (403) 266-0202
Fax: (403) 237-7716
2900, 645 - 7th Avenue S.W.
Calgary, Alberta T2P 4G8
Please visit our website at www.tricanwellservice.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/96372
