CALGARY, AB, Jan. 4, 2022 /CNW/ - Stampede Drilling Inc.
("Stampede" or the "Corporation") (TSXV: SDI) is pleased to provide
the following update.
Operational Update
Operationally, Stampede currently has all 10 of its fully crewed
marketable drilling rigs scheduled to go to work for the first
quarter of 2022 due to the Corporation's expanding customer base.
Discussions are ongoing with current and new customers to minimize
the environmental footprint of our rigs as well as create further
value for customers and shareholders through these initiatives.
Joint Venture
Stampede has entered into a joint venture relationship (the
"Joint Venture") with a well-established private Alberta based company ("AlbertaCo")
specializing in the engineering, manufacturing and supply of fully
integrated under balanced coil drilling rigs ("UBC Drilling Rigs")
and corresponding support equipment for the oil and gas industry
worldwide. The business of the Joint Venture will be carried on
through a new subsidiary ("UBC Drillco") to be managed and operated
by Stampede. Stampede will make a total contribution of
$4.5 million to UBC Drillco,
consisting of $3 million of previous
cash contributions and ancillary drilling equipment valued at
$1.5 million for a 50% ownership. In
addition, Stampede has acquired a minority interest in AlbertaCo
for an aggregate investment of $3
million in cash. AlbertaCo will continue to own the
technology in respect of the UBC Drilling Rigs and related systems
which will be licensed to UBC Drillco. UBC Drillco has completed
the fabrication of one UBC Drilling Rig.
Stampede believes both investments will enhance the
Corporation's strategy in the provision of industry leading
services for ESG extraction of hydrocarbons from bypassed reserves,
low pressure reservoirs and extend the reach in underbalanced short
radius wells through-tubing re-entry drilling applications in the
future. The purpose of the Joint Venture is to combine Stampede's
extensive drilling operations experience with AlbertaCo's
technology of E-line coil tubing directional tools, tool deployment
system, integrated drilling control systems, pumping systems,
automated live wellbore modeling system, coil tubing injectors and
reels. The Joint Venture estimates deployment and beta testing on
the new UBC Drilling Rig and related technology to be completed by
the end of the second quarter in 2022.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Forward-Looking Information
Certain statements contained in this News Release constitute
forward-looking statements or forward-looking information
(collectively, "forward-looking information").
Forward-looking information relates to future events or the
Corporation's future performance. All information other than
statements of historical fact is forward-looking information. The
use of any of the words "anticipate", "plan", "contemplate",
"continue", "estimate", "expect", "intend", "propose", "might",
"may", "will", "could", "should", "believe", "predict", and
"forecast" are intended to identify forward-looking
information.
This News Release contains forward-looking information
pertaining to, among other things: the impacts of COVID-19 and
expectations and responses related thereto; the establishment and
future operations of the Joint Venture, the Corporation's
performance and safety record and expectations related thereto; and
expectations associated with the Corporation's outlook, including
among other things, anticipated commodity pricing and expectations
related to industry activity, improvements, and expected capital
spending of the Corporation's customers, among others.
Forward-looking information is presented in this News Release
for the purpose of assisting investors and others in understanding
certain key elements of the Corporation's financial results and
business plan, as well as the objectives, strategic priorities and
business outlook of the Corporation, and in obtaining a better
understanding of the Corporation's anticipated operating
environment. Readers are cautioned that such forward-looking
information may not be appropriate for other purposes.
Forward-looking information, by its very nature, is subject to
inherent risks and uncertainties and is based on many assumptions,
both general and specific, which give rise to the possibility that
actual results or events could differ materially from the
expectations of the Corporation expressed in or implied by such
forward-looking information and that the Corporation's business
outlook, objectives, plans and strategic priorities may not be
achieved. Macro-economic conditions, including public health
concerns (including the impact of the COVID-19 pandemic) and other
geopolitical risks, the condition of the global economy and,
specifically, the condition of the crude oil and natural gas
industry, and the ongoing significant volatility in world markets
may adversely impact drilling and completions programs, which could
materially adversely impact the Corporation.
In addition to other factors which may be identified in this
News Release, such forward-looking information is subject to
various risks, uncertainties and assumptions, including, but not
limited to: the condition of the global economy, including trade,
public health (including the impact of the COVID-19 pandemic) and
other geopolitical risks; the stability of the economic and
political environment in which the Corporation operates; future
commodity prices and the potential impact on the Corporation and
the industry in which the Corporation operates, including levels of
exploration and development activities; the success (or lack
thereof) of the testing of the Drilling Apparatus; the ability for
DrillCo to secure new customers to contract for DrillCo's rigs and
the Drilling Apparatus; the ability for DrillCo to continue to be
supplied with Drilling Apparatus and new rigs; the ability for
DrillCo's competitors to deploy technology that effectively
competes with the Drilling Apparatus; the ability for AlbertaCo to
patent and/or otherwise protect any proprietary technology
comprising the Drilling Apparatus; the ability for AlbertaCo and
Stampede to access capital to further fund the Joint Venture; the
success of the measures implemented by the Corporation to ensure
the safety of its field and office employees and safe, efficient
and reliable operations at each of its drilling sites; the
creditworthiness of the Corporation's customers and counterparties;
the effectiveness of the Corporation's financial risk management
policies at ensuring all payables are paid within the pre-agreed
credit terms; the ability of the Corporation to retain qualified
staff; the ability of the Corporation to obtain financing on
acceptable terms; the impact of increasing competition; the belief
that the Corporation's principal sources of liquidity, its
operating cash flows, operating loan and debt and equity financings
will be sufficient to service its debt and fund its operations and
other strategic opportunities; the timing and impacts of
lost-in-hole recoveries; the expected effects of seasonality and
weather on the Corporation's operations and business; the ability
to protect and maintain the Corporation's intellectual property;
the ability of the Corporation to maintain key customers; foreign
currency exchange rates; interest rates; the regulatory framework
regarding taxes and environmental matters in the jurisdictions in
which the Corporation operates; and the ability of the Corporation
to successfully implement key cost and discretionary spending plan
adjustments. Actual results and future events could differ
materially from those expected or estimated in such forward-looking
information. As a result, the Corporation cannot guarantee that any
forward-looking information will materialize and we caution you
against relying on any of this forward-looking information.
Accordingly, readers should not place undue reliance on
forward-looking information.
Additional information on these and other factors that the
Corporation's forward-looking information is subject to are
disclosed in the Corporation's management's discussion and analysis
and annual information form each dated March
24, 2021, the Corporation's management's discussion and
analysis dated November 3, 2021, and
in other reports filed with the securities regulatory authorities
in Canada from time to time and
available on SEDAR (sedar.com).
Statements, including forward-looking information, are made as
of the date of this News Release and the Corporation does not
undertake any obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, except as may be required by applicable securities
laws. The forward-looking information contained in this News
Release is expressly qualified by this cautionary statement.
SOURCE Stampede Drilling Inc.
