Savanna Energy Services Corp. is an oilfield services company operating in Western Canada and the U.S. The Company's overall business is conducted through two major divisions: contract drilling and oilfield services.
OPERATIONAL HIGHLIGHTS
- The drilling division increased the number of operating days by 24% in the third quarter of 2008 relative to 2007 due to an increase in the average number of net rigs deployed in the three month periods from 84 to 100 and a more geographically diversified operating area.
- The oilfield services division achieved a 50% increase in revenues in the third quarter of 2008 with only a 26% increase in average fleet size from the same period in 2007. The well servicing division increased the average number of net rigs in service from 53 in Q3 2007 to 67 in Q3 2008.
- During the third quarter, Savanna commissioned its fifth and sixth well servicing rigs and delivered its fifteenth drilling rig in the U.S.
- In September 2008, Savanna entered into the oilfield services rental business through the acquisition of the assets of a privately-held company in Alberta. This acquisition marks the opening of a new growth avenue for Savanna through its already existing field infrastructure and distribution network.
- In October 2008, the Company acquired 3 well servicing rigs and related equipment which will be based out of Carlyle, Saskatchewan, further expanding Savanna's growing well servicing and drilling presence in that region. Savanna now has 8 drilling rigs and 14 well servicing rigs dedicated to the South Saskatchewan market, an increase from 2 drilling rigs and no service rigs during Q3 2007.
In combination with previously announced capital programs and acquisitions, the Savanna drilling rig fleet will grow by a minimum of 12 rigs, to 108, or by 13% from January 1, 2008 to the completion of the capital program in 2009. Savanna's well servicing fleet will increase by a minimum of 11 rigs, to 75, or by 17% over the same time frame.
As previously described the Company acquired the assets of an oilfield services rental company in September 2008. Included in the assets was a substantial inventory of drilling and well servicing-related rental assets and support equipment, as well as a machining and pipe-inspection facility. The acquisition is intended to provide a platform for the development of a full-service rental division within the Company for both Canada and the U.S. Operations are based out of field offices in Medicine Hat and Lloydminster and service the surrounding areas including southwest Saskatchewan. All of the key management principals have agreed to remain with Savanna in their present roles. This new division will complement and augment the Company's growing position in the drilling and well servicing market in Canada, and provide an opportunity to expand its Canadian presence and introduce a rental component to its U.S. operations. -- www.cnxmarketlink.com
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