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Cathedral Energy Services announces increase in 2008 capital budget and capital budget for 2009
/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/ CALGARY, Nov. 18 /CNW/ - Cathedral Energy...
About this update from Act Energy Technologies Ltd.
[{"type":"text","content":"\n\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/\n\n\nCALGARY, Nov. 18 /CNW/ - Cathedral Energy Services Income Trust (TSX:\nCET.UN; the "Trust") is pleased to announce the board of directors of the\nTrust's Administrator, Cathedral Energy Services Ltd. ("Cathedral"), have\napproved an updated 2008 capital budget of $51.4 million (previous approved\nbudget was $39.9 million) and a 2009 capital budget of $17.0 million. Included\nin the 2008 and 2009 capital expenditures are maintenance capital items in the\namount of $745,000 and $1,500,000, respectively. The 2008 and 2009 capital\nexpenditures will be financed by way of a combination of the Trust's credit\nfacilities and cash flow from operations.\n\n\nIn summary, the major items within the total 2008 capital budget are: i)\n20 Electro-Magnetic Measurement-While-Drilling ("EM-MWD") systems: ii)\nexpansion of the mud motor and collar fleet to accommodate increased\ndirectional drilling capacity as well as to reduce rental expense for such\nequipment; iii) 11 production testing units as well as progress payments on\nunits to be received in 2009; iv) specialty wireline tools; and v) facility\nacquisition costs. The Trust expects to end 2008 with 98 MWD systems (37 in\nU.S.), 28 wireline units (5 in U.S.) and 30 production testing units (8 in\nU.S.).\n\n\nThe major items with the 2009 capital budget are: i) an upgrade of the\nfleet of EM-MWD systems to our third generation; ii) addition of 11 MWD\nsystems; iii) expansion of the mud motor and collar fleet to accommodate\nincreased directional drilling capabilities; iv) addition of 7 production\ntesting units for the U.S. market; and v) facility renovation costs.\n\n\nThe Trust continues to make progress towards commencing commercial\nactivities in Venezuela. In contemplation of providing services, the Trust is\nmobilizing directional drilling equipment for operations in Venezuela. The\nmovement of this equipment to Venezuela will bring our investment in\nfacilities and equipment in Venezuela to approximately $7.3 million.\n\n\nCathedral's third generation ("G3") EM system has been commercially\nreleased. The G3 tool utilizes enhanced formation impedance matching\ntechniques coupled with advanced data encoding and decoding methods that has\nallowed for substantially improved trans...