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Ensign Provides an Update on New Drilling Rig Contracts (Permian, Canada, and International) and an Update on the Integration of Trinidad
Ensign Provides an Update on New Drilling Rig Contracts (Permian, Canada, and Internationa...
About this update from Ensign Energy Services Inc.
[{"type":"text","content":"\n\n\n\nEnsign Provides an Update on New Drilling Rig Contracts (Permian, Canada, and International) and an Update on the Integration of Trinidad\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, March 28, 2019\n\n\n\nCALGARY, March 28, 2019 /CNW/ - Ensign Energy Services Inc. (TSX: ESI) (\"Ensign\" or \"We\") is pleased to provide an update on recently awarded drilling rig contracts and the integration of Trinidad Drilling Ltd. (\"Trinidad\").\nNew Drilling Rig Contracts\nEnsign has recently been awarded significant new drilling contracts in the United States, Canada and the Middle East. The cost to prepare and mobilize the rigs required to fulfill these new contractual obligations will not require any increase to our previously announced CAD $102 million net capital expenditure budget for 2019.\nIn the Permian basin region of the United States, Ensign has been successful in contracting, with a major customer, an additional three ADR®-1500 Super-Spec type rigs, each on 1-year term contracts. All three of these drilling rigs, plus the existing six rigs currently contracted to this major customer, will receive newly installed Ensign Edge® wellsite technology controls systems. The Ensign Edge® technology platform continues to be employed on an increasing number of Ensign drilling rigs (including those acquired from Trinidad) in response to customer demands.\nIn Canada, the demand for deeper capacity rigs and the tightened supply in this rig category has positively changed the outlook moving forward. We have recently been awarded new 2-year contracts for three of our ADR®-1500 HP Super-Spec drilling rigs. These contracts are at rates reflective of a tightening market.\nInternationally, Ensign has been awarded, in Bahrain, two 3-year initial term contracts, each with two 1-year extensions beyond the initial 3-year term. These contracts are for our ADR®-2000 HP Super-Spec rigs, one of which is owned 100% by Ensign, and one of which is owned 60% by Ensign through our joint venture, Trinidad Drilling International Luxembourg S....