Savanna Energy Services Corp. Announces New Equipment Contracts

Savanna Energy Services Corp. Announces New Equipment Contracts 
CALGARY, ALBERTA -- (Marketwired) -- 01/13/14 --   Savanna Energy
Services Corp.  (TSX: SVY) ("Savanna" or "the Company") is pleased to
announce that it has entered into agreements to expand both its
drilling and workover fleets. These new builds will further expand
and deepen our North American drilling rig focus as well as expand
our footprint in Australia. A portion of the long lead items we
acquired previously will be utilized for the drilling rig. An
additional $25 million of capital will be required for the new
Savanna has agreed to a long-term contract to supply an Ultra Heavy
Telescopic Double AC Drilling Rig with a three-year term to an
existing customer. This drilling rig will be pad-capable, have a hook
load of 440,000 lbs., be equipped with two- 1,600 horsepower pumps, a
1,200 horsepower drawworks and will be capable of drilling vertical
wells to a depth in excess of 4,000 meters and long reach horizontals
in excess of 5,500 meters. This will be the seventh rig with these
capabilities and size in Savanna's North American fleet. 
Savanna has contracted three new flush-by units for its workover
fleet in Australia. A flush-by unit is a compact, self- contained
unit designed for rapid deployment and safe operations which
integrates features of a pressure truck and a small rod- rig, and is
used for diagnosing, trouble-shooting and repairing coal seam gas
wells. These contracts are in addition to five workover rig contracts
awarded in 2013, all of which were awarded outside of the normal
tendering process, and are expected to be delivered to Australia
during the second and third quarters of 2014. Savanna's fifth
drilling rig, delivered in the fourth quarter of 2013, commenced
field operations in mid-December. 
The latest contracts, combined with new equipment previously
announced and under construction, will result in more than a 75%
expansion of Savanna's fleet in Australia by the end of 2014. Savanna
remains well positioned to continue generating increasing returns
from this division during 2014 and beyond. Savanna is experiencing
strong demand for its drilling, workover, trucking and rental
equipment in Australia, and the Company remains optimistic about its
future prospects in the region. There remain several active and
pending tenders outstanding for additional equipment. Savanna will
further update its capital program based on the results of these
tenders, if, as, or when they are announced. 
Savanna is a Canadian-based international drilling and oilfield
services provider with operations in Canada, the United States and
Australia. The Company provides state-of-the-art equipment and
services directly, as well as through several strategic First Nations
partnerships in Canada. 
Cautionary Statement Regarding Forward-Looking Information and
Certain statements and information contained in this press release
may constitute forward-looking information within the meaning of
applicable Canadian securities legislation and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. The use of any of the words
"expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans",
"intends", "might" and similar expressions are intended to identify
forward-looking information or statements. In particular, but without
limiting the foregoing, this press release contains forward-looking
information and statements pertaining to the following: the
management of costs in respect of the build and commissioning of
drilling rigs and Australia flush-by units. 
These statements are based on certain assumptions and analysis made
by Savanna in light of its experience as well as other factors it
believes are appropriate in the circumstances including, without
limitation: the progress of Savanna's current and proposed capital
projects and current customer advice on deployment for specific
customer programs. However, whether actual results or events will
conform to Savanna's expectations and predictions is subject to a
number of known and unknown risks and uncertainties which could cause
actual results and events to differ materially from Savanna's
expectations including, without limitation: fluctuations in the price
and demand for oil and natural gas; fluctuations in the level of oil
and natural gas exploration and development activities; fluctuations
in the demand for well servicing and contract drilling; the effects
of weather conditions on operations and facilities; the existence of
competitive operating risks inherent in well servicing and contract
drilling; general economic, market or business conditions; changes in
laws or regulations, including taxation, environmental and currency
regulations; the lack of availability of qualified personnel or
management; the other risk factors set forth under the heading "Risks
and Uncertainties" in Savanna's Annual Report and under the heading
"Risk Factors" in Savanna's Annual Information Form; and other
unforeseen conditions. 
All of the forward-looking information and statements made in this
press release are qualified by this cautionary statement and there
can be no assurance that the actual results or events anticipated by
Savanna will be realized or, even if substantially realized, that
they will have the expected effects on Savanna or its business or
operations. Except as may be required by law, Savanna assumes no
obligation to update publicly any such forward looking information
and statements, whether as a result of new information, future
events, or otherwise. 
Savanna is a Canadian-based drilling and oilfield services provider
with operations in Canada, the United States and Australia, focused
on providing fit for purpose equipment and technologies. 
Savanna Energy Services Corp.
Ken Mullen
President and Chief Executive Officer
(403) 503-9990 
Savanna Energy Services Corp.
Dwayne LaMontagne
EVP Business Development and Chief Development Officer
(403) 503-9990
Press spacebar to pause and continue. Press esc to stop.