Hyduke Energy Services Inc. HYKCF

Energy

"Hyduke Energy Services Inc is an integrated oilfield services company engaged in the manufacture, repair and distribution of oilfield equipment. The company operates in three segments, Manufacturing and Fabrication segment that designs, manufactures, refurbishes and repairs land-based drilling rigs, well servicing rig, drilling support equipment, workover support equipment, storage tanks, custom steel fabrication and custom machining; Supply and Service segment that includes the procurement and

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Hyduke Energy Services Inc.

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Comment by pete7u9on Dec 19, 2007 5:45pm

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Post# 14048551

RE: Precision Drilling '08 cap-ex plans

2008 Capital Expenditure Program Targets "Super" Series Rig Expansion

Precision plans to initiate record spending of $370 million in its 2008 capital expenditure program, up approximately 70% from 2007. The program targets rapidly growing high performance drilling requirements in North American markets for directional, horizontal and environmentally sensitive drilling programs.

High performance drilling rigs enable customers to significantly improve their drilling economics by safely drilling and completing complex oil and gas wells considerably faster. Precision's Super SingleTM rigs demonstrate this high performance capability combining high mobility, automation, advanced control systems, minimal environmental impact with highly trained crews. Precision will further develop and market its highly successful Super SingleTM drilling rig and expand the product line including the recently released "Super Triple" and the new for 2008 "Super Double" rigs for the deeper high performance drilling opportunities. The "Super" series high performance drilling rigs are valued by Precision's customers and achieve favorable day rates and terms as compared to traditional rigs. This "Super" series capital expansion plan coupled with Precision's high performance rig crews will further differentiate Precision's service offering to customers.

The capital allocation is estimated as follows:

- New 2008 expansion capital of about $260 million to initiate construction of 19 new "Super" series land drilling rigs for staged delivery over the next 6 to 18 months and to provide other equipment additions for the Contract Drilling and Completion and Production Services segments.

During 2007, Precision grew its United States drilling rig fleet from one to twelve. The pace of growth for 2008 is expected to increase with a continued mix of rig deployments from Canada and new rig construction.

Precision is in discussions with customers regarding the new rigs and will update contractual status on a quarterly basis. During the fourth quarter of 2007, Precision permanently decommissioned 11 drilling rigs and 16 service rigs from its Canadian fleet and will continue to assess the fleet for less productive rigs on an ongoing basis.

- Carry over expansion capital of about $35 million to complete three drilling rigs under contract for North American customers as previously announced plus one additional new Super SingleTM rig recently contracted for work in the Alberta oil sands.

- Upgrade capital expenditures are estimated to be marginally higher than 2007 at about $75 million. These upgrade expenditures are for the betterment of existing equipment and infrastructure.

Precision is pleased to announce that international drilling operations are underway with one drilling rig being deployed from Canada to a Latin American destination for commencement early in the first quarter of 2008. This contractual arrangement is enabling Precision to reestablish internal infrastructure for the international market and reflects early marketing efforts to identify opportunities. The expiration in August 2008 of certain non-compete provisions from prior business divestitures creates global diversification opportunities for Precision in the well known, high producing, hydrocarbon regions of the world.

Precision expects to begin 2008 with a drilling rig fleet of 245 with 232 positioned in Canada, 12 in the United States and one in Latin America for an industry market share of about 27% in Canada and 1% in the United States.

For the service rig division in Canada, Precision's Completion and Production services segment expects to begin 2008 with a fleet of 223, an industry market share of about 20%.

Precision intends to fund upgrade capital expenditures and cash distributions to unitholders through cash flow from operating activities and fund expansion capital expenditures through a combination of cash flow from operating activities and credit facilities. Precision's fiscal objective is to manage long-term debt levels to maintain a strong financial position throughout the oilfield services seasonal and economic cycles.