CALGARY, ALBERTA--(Marketwired - Sep 11, 2013) - Total Energy Services Inc. ("Total") (TOT.TO) announces that it has increased its 2013 capital expenditure budget by $17.2 million to $95.8 million. This increase is directed towards Total's Contract Drilling Services division, Chinook Drilling, and includes the construction of a 4,200 meter (vertical depth rating) AC electric telescopic double drilling rig complete with top drive and the upgrade of Chinook's remaining conventional single drilling rig.
The construction of the new drilling rig is scheduled for completion by the second quarter of 2014. Chinook Drilling will look to finalize contract terms for the new rig build closer to completion although there is significant customer interest in this rig and contract discussions are underway. The single rig upgrade is expected to be completed during the second quarter of 2014 after the existing rig completes a winter drilling program to which it has been committed.
Upon completion of this capital program, Chinook Drilling will have a modern fleet of 17 drilling rigs, including 15 telescopic doubles, 14 of which have vertical depth ratings of 3,000 meters or greater, and two extended reach singles with integrated top drives and vertical depth ratings of 1,800 meters. The construction of rig 17 represents Chinook's entry into the AC electric drilling rig market and represents an area of potential significant future growth for Total's Contract Drilling Services division.
Total intends to finance its 2013 capital expenditure budget from cash on hand, operating cash flow and, if necessary, its $35 million credit facility which is currently fully available and undrawn.
Total is a growth oriented energy services corporation involved in contract drilling services, rentals and transportation services and the fabrication, sale, rental and servicing of natural gas compression equipment. The common shares of Total are listed and trade on the TSX under the symbol "TOT".
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.