THE WOODLANDS, Texas,
July 28, 2017 /PRNewswire/
-- Layne Christensen Company, (NASDAQ: LAYN) ("Layne" or the
"Company"), the largest water well drilling company in the United States and a leading provider of
water infrastructure solutions, today announced the completion of
its high-capacity water pipeline and infrastructure system serving
energy producers in the prolific Delaware Basin in West Texas.
Michael J. Caliel, President and
Chief Executive Officer of Layne, commented, "We are pleased with
the early completion of this project, and have begun delivering
water to customers. This infrastructure business is an
expansion of our water-focused platform, which leverages our
extensive experience to better serve the energy sector. We expect
to see continuing demand growth for water in the energy sector,
especially in the Delaware Basin,
due to attractive producer economics, longer horizontal drilling
lengths, and more use of water per foot of lateral length."
Layne's new water infrastructure system is anchored by nearly
1,000 acres of Company-owned, highly-productive water-producing
land near Pecos, TX. Layne
has completed construction of a high capacity 22-inch diameter
water pipeline of more than 20 miles in length, 750,000 barrels of
storage through two lined, in-ground storage ponds near the water
wells, and associated pump stations. Layne has the ability to
deliver water at multiple points along the pipeline route, and has
installed an electronic automation system that will allow Layne to
remotely monitor and control all aspects of the system including
storage levels, pipeline pressures, volume deliveries and water
well production.
The system has initial production and delivery capacity of
100,000 barrels per day of non-potable water, with significant
capacity to support further expansion from both additional water
sources and delivery points. The capital investment for the
system, including land cost, is approximately $18 million.
Financial returns from the system are anticipated to be
accretive to earnings and cash flow during Layne's fiscal third
quarter beginning August 1, 2017, and
the Company anticipates expanding capacity over time.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Exchange Act of 1934. Such statements may
include, but are not limited to, statements of plans and
objectives, statements of future economic performance and
statements of assumptions underlying such statements, and
statements of management's intentions, hopes, beliefs, expectations
or predictions of the future. Forward-looking statements can
often be identified by the use of forward-looking terminology, such
as "should," "intend," "continue," "believe," "may," "hope,"
"anticipate," "goal," "forecast," "plan," "estimate" and similar
words or phrases. Such statements are based on current expectations
and are subject to certain risks, uncertainties and assumptions,
including but not limited to: prevailing prices for various
commodities, unanticipated slowdowns in the Company's major
markets, the availability of credit, the risks and uncertainties
normally incident to the industries of operation, the impact
of competition, the effect of any deregulation or other initiatives
by the Trump Administration, the effectiveness of operational
changes expected to increase efficiency and productivity, the
availability of equity or debt capital needed for our business,
including the refinancing of our existing indebtedness as it
matures, worldwide economic and political conditions and foreign
currency fluctuations that may affect worldwide results of
operations. Should one or more of these risks or uncertainties
materialize, or should underlying assumptions prove incorrect,
actual results may vary materially and adversely from those
anticipated, estimated or projected. These forward-looking
statements are made as of the date of this filing, and the Company
assumes no obligation to update such forward-looking statements or
to update the reasons why actual results could differ materially
from those anticipated in such forward-looking statements.
About Layne
Layne is a global water management, infrastructure services and
drilling company, providing responsible solutions to the world of
essential natural resources — water, minerals and energy. We
offer innovative, sustainable products and services with an
enduring commitment to safety, excellence, and integrity.
Contacts
J. Michael Anderson
Chief Financial Officer
281-475-2694
michael.anderson@layne.com
Dennard Lascar Associates
Jack Lascar
713-529-6600
jlascar@dennardlascar.com
[LAYN-G]
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SOURCE Layne Christensen Company