TSX: SHLE
CALGARY, Oct. 24, 2018 /CNW/ - Source Energy Services Ltd.
("Source") announced today it has entered into a three-year
agreement with Strath Resources Ltd. ("Strath") to provide Strath
with Northern White proppant and related logistics services, for
its Kakwa area Montney wells. This
agreement supports Strath's development of its liquid rich Kakwa
acreage with an efficient and reliable supply of northern white
proppant from Source's Wembley,
Alberta terminal.
Brad Thomson, Chief Executive
Officer of Source said, "Source is pleased to enter into an
agreement with Strath to support its Montney activity. By working together, our
companies are able to ensure the most efficient delivery of
northern white proppant to the wellsite."
Steve Fagan, President & CEO
of Strath said, "Strath's rapid expansion within the last 18 months
has bolstered the company's commitment to developing our high
netback Kakwa asset. By partnering with Source, in support of our
continued development, Strath is ensuring it has optimized another
key element in the supply chain."
Source's Wembley terminal was
recently expanded through the addition of a second unit train
track. The terminal can now transload over 200,000 metric tonnes of
proppant per month, making it Canada's highest capacity frac sand
terminal.
ABOUT SOURCE ENERGY SERVICES
Source is a fully integrated producer, supplier and distributer
of high quality Northern White frac sand primarily to the WCSB.
Source provides its customers with a full end-to-end solution
through its mines, processing facilities, rail assets,
strategically located terminal network and "last mile" logistics
operations. In addition, Source provides storage and logistics
services for other bulk oil and gas well completion materials that
are not produced by Source. Source's full-service approach allows
customers to rely on its logistics capabilities to increase
reliability of supply and to ensure the timely delivery of their
growing requirements for frac sand and other bulk completion
materials.
ABOUT STRATH RESOURCES LTD.
Strath is a Calgary-based
private company focused on the development of its core oil and
natural gas asset in the Kakwa area of Alberta's Deep Basin. It's positioned for
substantial growth of its proven, multi-zone resource in the
Montney, Wilrich and Dunvegan zones. Strath's growth is supported
by high working interest and operatorship of more than 400 sections
of land, ownership of gas plant and gathering infrastructure, and
midstream arrangements that provide for processing, transportation
and fractionation of its oil and gas reserves.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute
forward-looking statements relating to, without limitation,
expectations, intentions, plans and beliefs, including information
as to the future events, results of operations and Source's future
performance (both operational and financial) and business
prospects. In certain cases, forward-looking statements can be
identified by the use of words such as "expects", "estimates",
"forecasts", "intends", "anticipates", "believes", "plans",
"seeks", "projects" or variations of such words and phrases, or
state that certain actions, events or results "may" or "will" be
taken, occur or be achieved. Such forward-looking statements
reflect Source's beliefs, estimates and opinions regarding its
future growth, results of operations, future performance (both
operational and financial), and business prospects and
opportunities at the time such statements are made, and, except as
may be required by law, Source undertakes no obligation to update
forward-looking statements if these beliefs, estimates and opinions
or circumstances should change. Forward-looking statements are
necessarily based upon a number of estimates and assumptions made
by Source that are inherently subject to significant business,
economic, competitive, political and social uncertainties and
contingencies. Forward-looking statements are not guarantees of
future performance. In particular, this press release contains
forward-looking statements pertaining, but not limited, to: outlook
for operations and sales volumes; activity levels and conditions
pertaining to the frac sand industry; rail service; expectations
regarding increased demand for and sales volumes of sand in 2019
and beyond; and Source's objectives, strategies and competitive
strengths. By their nature, forward-looking statements involve
numerous current assumptions, known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Source to differ materially from
those anticipated by Source and described in the forward-looking
statements. With respect to the forward-looking statements
contained in this press release, assumptions have been made
regarding, among other things: future oil, natural gas and natural
gas liquids prices; future global economic and financial
conditions; future commodity prices, demand for oil and gas and the
product mix of such demand; levels of activity in the oil and gas
industry in the areas in which Source operates; the continued
availability of timely and safe transportation for Source's
products, including without limitation, rail accessibility; the
maintenance of Source's key customers and the financial strength of
its key customers' operating costs; that the regulatory environment
in which Source operates will be maintained in the manner currently
anticipated by Source; future exchange and interest rates;
geological and engineering estimates in respect of Source's
resources; the recoverability of Source's resources; the accuracy
and veracity of information and projections sourced from third
parties respecting, among other things, future industry conditions
and product demand; demand for horizontal drilling and hydraulic
fracturing and the maintenance of current techniques and
procedures, particularly with respect to the use of proppants;
Source's ability to obtain qualified staff and equipment in a
timely and cost-efficient manner; the regulatory framework
governing royalties, taxes and environmental matters in the
jurisdictions in which Source conducts its business; future capital
expenditures to be made by Source; and future sources of funding
for Source's capital program. A number of factors, risks and
uncertainties could cause results to differ materially from those
anticipated and described herein including, among others: the
effects of competition and pricing pressures; risks inherent in key
customer dependence; effects of fluctuations in the price of
proppants; risks related to indebtedness and liquidity, including
Source's leverage, restrictive covenants in Source's debt
instruments and Source's capital requirements; risks related to
interest rate fluctuations and foreign exchange rate fluctuations;
changes in general economic, financial, market and business
conditions in the markets in which Source operates; changes in the
technologies used to drill for and produce oil and natural gas;
Source's ability to obtain, maintain and renew required permits,
licenses and approvals from regulatory authorities; the stringent
requirements of and potential changes to applicable legislation,
regulations and standards; the ability of Source to comply with
unexpected costs of government regulations; liabilities resulting
from Source's operations; the results of litigation or regulatory
proceedings that may be brought against Source; the ability of
Source to successfully bid on new contracts and the loss of
significant contracts; uninsured and underinsured losses; risks
related to the transportation of Source's products, including
potential rail line interruptions or a reduction in rail car
availability or the impact of weather; the geographic and customer
concentration of Source; the ability of Source to retain and
attract qualified management and staff in the markets in which
Source operates; labour disputes and work stoppages and risks
related to employee health and safety; general risks associated
with the oil and natural gas industry, loss of markets, consumer
and business spending and borrowing trends; limited, unfavourable,
or a lack of access to capital markets; uncertainties inherent in
estimating quantities of mineral resources; sand processing
problems; and the use and suitability of Source's accounting
estimates and judgments. Although Source has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in its
forward-looking statements, there may be other factors, including
those described under the heading "Risk Factors" in the AIF, that
cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will materialize or prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. The
forward-looking statements contained in this press release are
expressly qualified by this cautionary statement. Readers should
not place undue reliance on forward-looking statements. These
statements speak only as of the date of this press release. Except
as may be required by law, Source expressly disclaims any intention
or obligation to revise or update any forward-looking statements or
information whether as a result of new information, future events
or otherwise.
SOURCE Source Energy Services