CALGARY, Alberta, Nov. 05, 2018 (GLOBE NEWSWIRE) -- PHX Energy Services Corp. ("PHX Energy" or
the “Corporation”) (TSX: PHX) announces that it has entered into a Purchase Agreement (the
“Agreement”) to purchase an initial fleet of Schlumberger PowerDrive Orbit1 Rotary Steerable Systems
(“RSS”). The Agreement includes an accompanying license for PHX Energy’s US subsidiary, Phoenix Technology Service
USA Inc. (“Phoenix USA”) to operate the PowerDrive Orbit RSS throughout the 48 contiguous states of the United
States. The purchase of this initial fleet is part of the Corporation’s 2018 capital expenditures program (the “2018
Program”) and will equip PHX Energy with a concurrent job capacity of 2-3 jobs.
The Schlumberger PowerDrive Orbit RSS is widely recognized as the industry’s leading RSS technology. Prior
to the Agreement, PHX Energy and Schlumberger partnered for a number of years on a rental basis to provide Schlumberger’s RSS in
combination with PHX Energy’s directional drilling services. As a result of this partnership, PHX Energy has developed internal
engineering and operational competencies to successfully deploy this RSS technology on drilling projects throughout the US.
The Corporation has been strategically focused on setting itself apart as a leader in high performance technologies and is pleased
to be the first company to enter an agreement of this nature with Schlumberger for the purchase of this industry leading RSS
technology. RSS deployment in the US market is growing, and PHX Energy will leverage Phoenix USA’s current operational footprint
and existing sales organization to market and operate the PowerDrive Orbit RSS. The addition of the PowerDrive Orbit RSS to PHX
Energy’s Velocity Real-Time system (“Velocity”) and its Atlas High Performance Drilling motor further
differentiates the Corporation’s product suite and allows PHX Energy to provide a proprietary and unparalleled drilling solution to
the market.
PHX Energy also announces that its Board of Directors has approved a preliminary 2019 capital expenditures
program of $15 million (the “2019 Program”). The 2019 Program is anticipated to principally be allocated
toward expanding PHX Energy’s Velocity and Atlas High Performance Drilling motor fleets. PHX Energy thus far in 2018 has
experienced increased activity, specifically in its US division, and believes that as new fleet capacity is delivered and deployed
this positive momentum will continue.
PHX Energy will continue to take a disciplined approach toward growth and believes the 2019 Program will aid in
further improvements in profitability. The 2019 Program is expected to be financed from a combination of cash flow from operations
and the Corporation’s unused credit facilities.
(1) Mark of Schlumberger
About PHX Energy Services Corp.
PHX Energy through its directional drilling subsidiary entities, provides horizontal and directional drilling
technology and services to oil and natural gas producing companies in Canada, the US, Russia and Albania. PHX Energy also provides
EDR technology and services.
Forward Looking Statements
Certain statements contained in this document constitute "forward looking statements" and/or "forward looking
information" within the meaning of applicable securities laws (collectively referred to as "forward looking statements").
When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate",
"expect", and similar expressions, are intended to identify forward looking statements. Such statements reflect the current views
of PHX Energy with respect to future events, programs and operating performance and speak only as of the date of this
document. In particular, this document contains forward looking statements pertaining the growth of the RSS market, the
potential impact of the addition of the RSS to PHX Energy’s fleet, the Corporation's preliminary 2019 Program, including the
anticipated allocation thereof, the expansion of the Corporation’s Velocity and Atlas High Performance motor fleets, the source of
funding for the program, the Corporation’s ability to carry out the program and the anticipated increase in 2019
activity.
Forward looking statements involve significant risks and uncertainties, should not be read as guarantees of
future performance or results and will not necessarily be accurate indications of whether such results will be achieved.
Readers are cautioned not to place undue reliance on these statements as a number of factors could cause actual results to defer
materially from the results discussed in these forward looking statements, including but not limited to those factors referred to
under the heading "Risk Factors" in the Corporation's Annual Information Form ("AIF") for the year ended December
31, 2017 and the Corporation's management's discussion and analysis for the year then ended and the three and nine-months ended
September 30, 2018. The forward looking statements in this press release are expressly qualified by this cautionary statement. PHX
Energy does not intend, or assume any obligation, to update these forward looking statements, except as may be required by
applicable securities laws.
For further information please contact:
John Hooks, CEO; Michael Buker, President; or Cameron Ritchie, Senior Vice President Finance and CFO
PHX Energy Services Corp.
Suite 1400, 250 2nd Street SW
Calgary, Alberta T2P 0C1
Tel: 403-543-4466 Fax: 403-543-4485 www.phxtech.com
