Precision Drilling Corporation Announces Strategic Technology and Service
Agreement & Marketing Alliance With Schlumberger
CALGARY, ALBERTA -- (Marketwired) -- 07/16/14 -- Precision Drilling
Corporation (TSX: PD)(NYSE: PDS) ("Precision") announced today that
to further its High Performance, High Value strategy it had entered
into a strategic technology and service agreement and marketing
alliance with Schlumberger, the world's leading provider of oilfield
services. The agreement aims to increase the industrialization of
unconventional drilling in North America through an engineered
approach that utilizes Precision's Tier 1 drilling rigs and allows
Precision access to Schlumberger's bottomhole assembly and services.
The agreement applies to Canada and the Lower 48 states in the U.S.
and includes contract drilling services, downhole drilling and
measurement technology, engineering expertise and operational
Through this agreement, Precision will continue to expand its
integrated directional drilling services utilizing Schlumberger's
downhole tools and related services supported by drilling engineering
and modeling, component integration, industry leading subsurface
knowledge and expertise, and high-quality measurements.
Alliance Customer Benefits
The agreement between Precision and Schlumberger will provide
customers with benefits by leveraging core respective strengths of
each organization to provide superior service to North American oil
and gas customers. Customers will benefit through access to a leading
Tier 1 contract driller with the broadest geographic footprint of any
driller in North America combined with best-in-class technology
portfolio that encompasses a proven understanding of downhole
conditions and overall system performance. The relationship targets
improved drilling performance, efficiency, consistency and reduced
cost of operations.
Precision brings the following to the alliance:
-- High Performance North American fleet of 320 drilling rigs including 204
highly efficient, highly mobile Tier 1 rigs;
-- Approximately 90 percent of Precision's North American activity involves
horizontal or directional wells;
-- Broad customer base with the leading market position in Canada and a
significant presence in the U.S. in all the major unconventional basins;
-- Highly skilled and experienced workforce supported by robust personnel
recruiting, training and development systems;
-- State of the art drilling industry Tech Centers in Houston, Texas and
Nisku, Alberta that support training and development functions as well
as core repair and maintenance support for drilling operations. Broad
regional repair and maintenance support provided by additional
facilities in Canada including Calgary, Grand Prairie and Nisku; and in
the U.S. including Alice, Cresson, Eunice, Grand Junction, Houston,
Midland, Williamsport and Williston; and
-- Excellent reputation for safety and field performance.
Schlumberger offers to Precision the following:
-- Drilling Group technologies with leadership in rotary steerable systems;
drilling tools; measurement- and logging-while-drilling (MLWD); surface
logging; drill bits; and drilling fluids technologies;
-- Well planning and well engineering with reservoir expertise to deal
effectively with the range of technical challenges in North America's
-- Best-in-class equipment management and maintenance services;
-- Training in drilling technologies and operational processes; and
-- Excellent reputation for safety and field performance.
Quote from Precision's CEO
Kevin Neveu, Precision's President and Chief Executive Officer,
commented on today's announcement: "Today's alliance between
Precision and Schlumberger meaningfully advances our integrated
directional drilling service offering and enables us to compete with
the complete range of downhole tool technology creating a value
proposition for customers that will be difficult to ignore. The
contract drilling leadership of Precision combined with the downhole
technology expertise of Schlumberger, will streamline the drilling
process, reduce costs and improve results."
Cautionary Statement Regarding Forward-Looking Information and
Certain statements contained in this release, including statements
that contain words such as "aims to", "will", "enables", "advances"
and similar expressions and statements relating to matters that are
not historical facts constitute "forward-looking information" within
the meaning of applicable Canadian securities legislation and
"forward-looking statements" within the meaning of the "safe harbor"
provisions of the United States Private Securities Litigation Reform
Act of 1995 (collectively, "forward-looking information and
In particular, forward looking information and statements include,
but are not limited to, the following:
-- the increased industrialization of unconventional drilling in North
-- the continued expansion of our integrated directional drilling services;
-- our expectations regarding benefits to customers and improved drilling
These forward-looking information and statements are based on certain
assumptions and analysis made by Precision in light of our experience
and our perception of historical trends, current conditions and
expected future developments as well as other factors we believe are
appropriate in the circumstances. These include, among other things
demand in Canada and the U.S. for directional drilling and Tier 1
drilling services and the ability of this alliance to deliver an
integrated service offering.
Whether actual results, performance or achievements will conform to
our expectations and predictions is subject to a number of known and
unknown risks and uncertainties which could cause actual results to
differ materially from our expectations. Such risks and uncertainties
include, but are not limited to volatility in the price and demand
for oil and natural gas and fluctuations in demand for our services,
the existence of competitive operating risks inherent in our
businesses, and other unforeseen conditions which could impact the
use of services supplied by Precision and Precision's ability to
respond to such conditions.
Consequently, all of the forward-looking information and statements
made in this release are qualified by these cautionary statements and
there can be no assurance that the actual results or developments
anticipated by Precision will be realized or, even if substantially
realized, that they will have the expected consequences to, or
effects on, Precision or its business or operations. Readers are
therefore cautioned not to place undue reliance on such
forward-looking information and statements. Except as may be required
by law, Precision assumes no obligation to update publicly any such
forward-looking information and statements, whether as a result of
new information, future events or otherwise.
Precision is a leading provider of safe and High Performance, High
Value services to the oil and gas industry. Precision provides
customers with access to an extensive fleet of contract drilling
rigs, directional drilling services, well service and snubbing rigs,
coil tubing services, camps, rental equipment, and wastewater
treatment units backed by a comprehensive mix of technical support
services and skilled, experienced personnel.
Precision is headquartered in Calgary, Alberta, Canada. Precision is
listed on the Toronto Stock Exchange under the trading symbol "PD"
and on the New York Stock Exchange under the trading symbol "PDS".
Precision Drilling Corporation
Vice President, Finance and Investor Relations
800, 525 - 8th Avenue S.W.
Calgary, Alberta, Canada T2P 1G1
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