Secure Energy Announces $155 Million Capital Budget for 2013

Secure Energy Announces $155 Million Capital Budget for 2013 
CALGARY, ALBERTA -- (Marketwire) -- 12/05/12 -- Secure Energy
Services Inc. ("Secure" or the "Corporation") (TSX:SES) is pleased to
announce its 2013 capital budget.  
The Corporation's Board of Directors has approved a preliminary 2013
capital budget of $155 million. Included in the $155 million is $15
million of carry over capital from 2012 projects related to the Rocky
Mountain House and Judy Creek full service terminals ("FSTs"). The
remaining $140 million of the Corporation's capital budget consists
of new facilities, expansions and equipment in strategic growth and
expansion areas in both Canada and the United States.  
The Corporation expects to invest $125 million in the Processing
Recovery and Disposal ("PRD") division which is allocated as follows: 


 
--  $115 million for growth capital consisting of three FSTs, two stand-
    alone water disposal facilities (SWDs), two landfills and long lead
    items; 
--  $7 million for expansion capital relating to additional treaters and
    tanks; and 
--  $3 million in sustaining capital for normal course maintenance
    operations.

 
Secure also expects to invest $15 million into the Drilling Services
("DS") division. The capital is allocated evenly between the Canadian
and U.S. operations and is largely comprised of onsite solids control
equipment. Secure's 2013 capital budget focuses on the Corporation's
aggressive expansion plans to invest in organic growth opportunities,
recycling services and complimentary services at existing facility
locations.  
In 2013, the Corporation's primary objectives will be to maintain and
strengthen its market position by consistently providing operational
excellence, innovative solutions and cost efficiencies to its
customers. Secure has a strong balance sheet and is well positioned
to capitalize on new opportunities that support its growing customer
base. The organic growth and expansion capital detailed above will
enhance our competitive positioning and expand our service offering
in both Canada and the US. The Corporation's PRD division is a
capital intensive business requiring upfront lead time to obtain the
appropriate regulatory approvals, order the necessary long lead items
and construct the faci
lities. It is expected that the majority of the
above capital program for 2013 will not have any cash flow impact
until 2014, which is typical considering the approval and
construction timelines for these types of facilities. Achieving the
above capital program will present new opportunities for Secure, its
customers and shareholders. 
The Corporation intends to fund the 2013 capital budget with cash
flow from operations and the Corporation's recently announced $300
million revolving 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. 
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. 
The Corporation operates two divisions:  
Processing, Recovery and Disposal Division: Operating under the trade
name Secure Energy Services Inc., 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 Energy Group Inc. ("Marquis Alliance"), XL Fluids Systems
("XL Fluids") and Imperial Drilling Fluids Engineering ("IDF"), 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. 
FORWARD-LOOKING STATEMENTS 
Certain statements contained in this document constitute
"forward-looking statements" and/or "forward-looking information"
within the meaning of applicable securities laws (collectively
referred to as forward-looking statements). 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 demand for the Corporation's services and the factors
contributing thereto; expansion strategy; the 2013 capital budget;
the allocation between the PRD and DS divisions and Canadian and U.S.
operations; the intended construction of three FSTs, two SWDs and two
landfills; debt service; capital expenditures; completion of
facilities; future capital needs; access to capital; acquisition
strategy; the Corporation's capital spending on the Rocky Mountain
House and Judy Creek, Alberta full service terminals and the timing
of completion thereof. 
Forward-looking statements concerning expected operating and economic
conditions are based upon prior year results as well as the
assumption that increases in market activity and growth will be
consistent with industry activity in Canada, United States, and
internationally and growth levels in similar phases of previous
economic cycles. Forward-looking statements concerning the
availability of funding for future operations are based upon the
assumption that the 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 statements
concerning the relative future competitive position of the
Corporation are based upon the assumption 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 and its subsidiaries to successfully
market their services and drilling and production activity in North
America will lead to sufficient demand for the Corporation's services
and its subsidiaries' services including demand for oilfield services
for drilling and completion of oil and natural gas wells, 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 and its subsidiaries'
services. Forward-looking statements concerning the nature and timing
of growth are 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 statements
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. Readers are cautioned 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 "Business Risks" and
under the heading "Risk Factors" in the Corporation's annual
information form ("AIF") for the year ended December 31, 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.
Contacts:
Secure Energy Services Inc.
Rene Amirault
Chairman, President and Chief Executive Officer
(403) 984-6100
(403) 984-6101 (FAX)
www.secure-energy.ca
 
 
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