Precision Announces Full Commercialization of Automation Offering & Roll-Out of Alpha Brand
November 19 2019 - 6:00AM
Precision Drilling Corporation (“Precision” or the “Company”)
(TSX:PD; NYSE:PDS) is pleased to announce the commercialization of
its automation services and the new brand roll-out of its
Alpha™ technology offering, which includes the
following core services:
- AlphaAutomation™ -
previously referred to as Process Automation Control (PAC)
- AlphaApps™
-
AlphaAnalytics™
A photo accompanying this announcement is
available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/89343c10-79bd-41f0-8896-ffe4df1b3e92
Precision’s AlphaAutomation
technology significantly enhances the efficiency and value of its
Super Triple drilling rig fleet and currently includes 32 systems
deployed across various basins in the U.S. and Canada. The benefits
of enhanced drilling efficiency, well-cost savings and consistency
gains AlphaAutomation provides when combined with
Precision’s Super Triple rig package is a compelling performance
and value proposition for our customers.
AlphaAutomation systems are currently contracted
at commercial rates, earning expected returns and achieving over
90% utilization, demonstrating that Precision has achieved
commercial acceptance.
A key component of
AlphaAutomation is its open platform, which is
designed to host multiple drilling performance applications
consisting of in-house, customer-developed or third-party
applications. Precision has partnered with various industry leaders
and currently has 15 revenue generating AlphaApps
either commercialized or in development, adding to its growing
portfolio of technology offerings.
Precision intends to continue deploying this
offering across its standardized Super Triple fleet, driven by
continued customer demand to lower drilling costs and improve
capital efficiency. This includes 24 additional systems over the
next 12 months, which have already been included in Precision’s
previously guided 2020 capital expenditure budget range of $60
million to $80 million.
Precision’s CEO, Kevin Neveu stated: “I am
excited to announce the full commercialization of Precision
Drilling’s automation technology and to unveil the Alpha
designation for Precision’s digital technologies.
AlphaAutomation running on our Super Triple rigs
has provided unequivocally safe, cost efficient, consistent and
repeatable drilling performance on all types of oil and gas wells.
Achieving this milestone is a result of three years of
field-hardening the software, extensively training our crews and
closely collaborating with our customers in order to overcome field
acceptance hurdles and fully demonstrate the value our technology
delivers. We have drilled over 1,000 wells with
AlphaAutomation and have successfully deployed
this highly scalable technology throughout North America. Without
question, our Alpha technology offering significantly enhances
Precision’s competitive positioning and our High Performance, High
Value strategy.”
More information on Precision’s
Alpha technologies is available on the company
website at www.precisiondrilling.com.
A photo accompanying this announcement is
available
at: https://www.globenewswire.com/NewsRoom/AttachmentNg/9de3f915-605d-415e-a6ea-e6346ac82ccb
© 2019 Precision Drilling Corporation.
All rights reserved. Alpha and other designs, names and marks used
herein are the trademarks of Precision Drilling
Corporation.
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION AND STATEMENTS
Certain statements contained in this report,
including statements that contain words such as "could", "should",
"can", "anticipate", "estimate", "intend", "plan", "expect",
"believe", "will", "may", "continue", "project", "potential" 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 statements").
In particular, forward looking information and
statements include, but are not limited to the following:
- our planned capital expenditures
for 2020; and
- our strategic priorities for
2020.
Undue reliance should not be placed on
forward-looking information and statements. 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;
- fluctuations in the demand for
contract drilling, well servicing and ancillary oilfield
services;
- our customers’ inability to obtain
adequate credit or financing to support their drilling and
production activity;
- changes in drilling and well
servicing technology which could reduce demand for certain rigs or
put us at a competitive disadvantage;
- shortages, delays and interruptions
in the delivery of equipment supplies and other key inputs;
- the effects of seasonal and weather
conditions on operations and facilities;
- the availability of qualified
personnel and management;
- a decline in our safety performance
which could result in lower demand for our services;
- changes in environmental laws and
regulations such as increased regulation of hydraulic fracturing or
restrictions on the burning of fossil fuels and greenhouse gas
emissions, which could have an adverse impact on the demand for oil
and gas;
- terrorism, social, civil and
political unrest in the foreign jurisdictions where we
operate;
- fluctuations in foreign exchange,
interest rates and tax rates; and
- other unforeseen conditions which
could impact the use of services supplied by Precision and
Precision’s ability to respond to such conditions.
Readers are cautioned that the forgoing list of
risk factors is not exhaustive. Additional information on these and
other factors that could affect our business, operations or
financial results are included in reports on file with applicable
securities regulatory authorities, including but not limited to
Precision’s Annual Information Form for the year ended December 31,
2018, which may be accessed on Precision’s SEDAR profile at
www.sedar.com or under Precision’s EDGAR profile at
www.sec.gov. The forward-looking information and statements
contained in this news release are made as of the date hereof and
Precision undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of
new information, future events or otherwise, except as required by
law.
About PrecisionPrecision 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 Super Series drilling rigs supported by an
industry leading technology platform that offers the most
innovative drilling solutions to deliver efficient, predictable and
repeatable results through service differentiation. Precision also
offers directional drilling services, well service rigs, camps and
rental equipment all 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”.
For further information, please contact:
Carey Ford, CFASenior Vice President and Chief
Financial Officer713.435.6247
Dustin Honing, CPAManager, Investor
Relations403.716.4515
Precision Drilling Corporation800, 525 - 8th
Avenue S.W.Calgary, Alberta, Canada T2P 1G1Website:
www.precisiondrilling.com
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