Fort McKay First Nation and Savanna Energy Services Corp. Form Energy Services Partnership
Marketwired
CALGARY, ALBERTA--(Marketwired - Aug 26, 2013) - Savanna Energy Services Corp. (SVY.TO) and Fort McKay First Nation are pleased to announce the formation of Fort McKay-Savanna Energy Services Limited Partnership (the "Partnership"). The Partnership will provide drilling, well servicing and coring services as well as oil field rental equipment in the Regional Municipality of Wood Buffalo. The Partnership will be owned between Savanna and Fort McKay, and will be positioned to provide drilling and related services to Steam Assisted Gravity Drainage (SAGD) operators working in the region. Savanna Drilling Corp., a subsidiary of Savanna, will provide management services to the Partnership.
Fort McKay has a long history of providing high quality services to the energy industry through its joint venture businesses and the Fort McKay Group of Companies. Fort McKay wishes to continue that tradition by partnering with Savanna to provide services to energy companies operating in northeastern Alberta. As a supplier of drilling and rental services, Savanna and Fort McKay anticipate their partnership will enable both groups to access opportunities in the surrounding oil sands regions.
"This partnership is an excellent opportunity for Fort McKay to grow and be active in providing new services to an ever changing and progressive region," said Chief Jim Boucher, "By expanding our services with Savanna, we will be well positioned for future opportunities that are sure to emerge in this region for many years to come."
"Fort McKay has a strong foundation of positive working relationships with Industry in the Regional Municipality of Wood Buffalo. Fort McKay is looking to diversify its business holdings, particularly in the burgeoning SAGD mining industry. We are excited about the launch of this new company and look forward to its success - success for both Savanna and Fort McKay."
Savanna has extensive experience working in partnerships with First Nation communities throughout Alberta since 2002. Savanna has been widely recognized for their partnership approach, winning the prestigious Alberta Chamber of Commerce "Aboriginal Partnership Award" in 2005 and 2012, as well as the Premier's Award of Distinction in 2010.
"Fort McKay is a very industrious and forward-thinking community with a history of building strong relationships in the energy industry," said Ken Mullen, President and CEO of Savanna. "Their reputation and solid experience in the oil sands region combined with Savanna's operational expertise, high quality equipment, and infrastructure to manage sophisticated equipment will position the Partnership for success in a desirable and growing market. With anticipated significant growth in slant, SAGD and coring drilling, and with the expected commensurate demand for completion, production and workover services and related rental opportunities, Savanna sees this partnership as a substantial potential growth opportunity for all our existing operating businesses"
Fort McKay is a Cree, Dene, and Métis community located approximately 60 kilometres north of Fort McMurray. Through the Fort McKay Group of Companies and a number of joint ventures, the Fort McKay First Nation provides a variety of services to the oil and gas industry and surrounding areas.
Savanna is a leading North American contract drilling and oilfield services company providing a broad range of drilling, coring, well servicing, and related services with a focus on fit for purpose technologies and industry-leading Aboriginal relationships.
Cautionary Statement Regarding Forward-Looking Information and Statements
Certain statements and information contained in this press release may constitute forward-looking information within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "might" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to the following: the anticipated growth in slant, SAGD and coring drilling in the Fort McKay Traditional Territories; the demand for completion, production and workover service and the demand for rental opportunities in the Fort McKay Traditional Territories.
These statements are based on certain assumptions and analysis made by Savanna in light of its experience as well as other factors it believes are appropriate in the circumstances including, without limitation: the status of current negotiations with its customers, the progress of Savanna's current capital projects and current customer advice on deployment for specific customer programs. However, whether actual results or events will conform to Savanna's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and events to differ materially from Savanna's expectations including, without limitation: fluctuations in the price and demand for oil and natural gas; fluctuations in the level of oil and natural gas exploration and development activities; fluctuations in the demand for well servicing and contract drilling; the effects of weather conditions on operations and facilities; the existence of competitive operating risks inherent in well servicing and contract drilling; general economic, market or business conditions; changes in laws or regulations, including taxation, environmental and currency regulations; the lack of availability of qualified personnel or management; the other risk factors set forth under the heading "Risks and Uncertainties" in Savanna's Annual Report and under the heading "Risk Factors" in Savanna's Annual Information Form; and other unforeseen conditions. Consequently, all of the forward-looking information and statements made in this press release are qualified by this cautionary statement and there can be no assurance that the actual results or events anticipated by Savanna will be realized or, even if substantially realized, that they will have the expected effects on Savanna or its business or operations. Except as may be required by law, Savanna assumes no obligation to update publicly any such forward looking information and statements, whether as a result of new information, future events, or otherwise.
