Total Energy doubles budget, upgrades fleet
Total Energy Services Inc. is almost doubling its 2012 capital expenditure budget to $58.1 million as the oilfield services company adds to its fleet of drilling rigs and makes other improvements.
The Calgary-based cooperation said Wednesday that the $27.5-million increase in capital spending includes $13.1 million for Chinook Drilling, its contract drilling services division.
It has also earmarked $5.2 million of the increase for its rentals and transportation division, $3.7 million for the gas compression services division and $5.5 million for overall capital maintenance.
Included in the budget for the contract drilling division is $10.5 million for construction of a 3,500-metre telescopic double drilling rig and $2.6 million of ancillary rig equipment and upgrades.
Expected to be completed in the fourth quarter, the new rig will give Chinook Drilling a modern fleet of 16 drilling rigs, including 14 telescopic doubles with vertical depth ratings of 3,000 metres or greater suited for extended reach horizontal drilling programs.
The company said it intends to finance its 2012 capital budget from cash on hand, operating cash flow and, if necessary, its $35-million credit facility.
Total is an energy services company involved in contract drilling services, rentals and transportation services and the fabrication, sale, rental and servicing of natural gas compression equipment.