Business
Cathedral Energy Services Announces Initial 2014 Capital Investment Program
/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA / CALGARY , Dec. 19, 2013 ...
About this update from Act Energy Technologies Ltd.
[{"type":"text","content":"\n\n\n/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/\n\n\nCALGARY, Dec. 19, 2013 /CNW/ - Cathedral Energy Services Ltd. (the\n \"Company\" or \"Cathedral\" / TSX: CET) announces that the Company's Board\n of Directors have approved an initial 2014 capital budget of $24\n million which includes $13 million of growth expenditures, $7 million\n of maintenance expenditures and $4 million of infrastructure\n expenditures.\n\n\nThe Directional Drilling division is expected to invest $20 million of\n the 2014 capital budget including $10 million for growth, $6 million\n for maintenance and $4 million for infrastructure.  Growth capital\n expenditures will include the addition of mud motors and drill collars\n for the expansion of Company's U.S. operations.  Maintenance capital\n expenditures are expected to allow for: 1) continued enhancement of the\n Company's Fusion MWD platform electronics; 2) addition of mud pulse\n transmitters to allow for expanded Fusion MWD dual telemetry\n capabilities; 3) continued conversion to Cathedral's proprietary mud\n motor bearing section; and 4) expansion of mud motor power section\n fleet to accommodate extended repair times and new configurations\n requested by customers.  The infrastructure investment relates to the\n construction of an operations facility in Oklahoma City, Oklahoma with\n full service repair capabilities. It is the intent of Cathedral to sell\n and leaseback the Oklahoma City operations facility following its\n completion.\n\n\nThe Production Testing division anticipates investing $3 million of\n growth capital expenditures comprised of auxiliary equipment and line\n pipe that would otherwise be rented and $1 million of maintenance\n expenditures.\n\n\nCathedral intends to finance its initial 2014 capital budget from cash\n flow from operations and, if necessary, its existing credit facility.\n\n\nOverall, for 2014 the focus for Cathedral will be the continuation of\n its U.S. expansion, increasing market share in Canada and its\n continuing review of all operating costs and selling, general and\n administrative expenditures with the goal of enhancing profitability. \n\n\nFORWARD LOOKING STATEMENTS\n\n\nThis news release contains certain forward-looking statements and\n forward-looking information (collectively referred to herein as\n \"forward-lookin...