(TheNewswire)
Calgary, Alberta – TheNewswire - July 7,2021 ( TSX:SHLE )
Source Energy Services Ltd. (“Source”) is pleasedto announce that it has entered into a new contract with PipestoneEnergy Corp. (“Pipestone”) and has extended and expanded itsrelationship with a major Montney Producer. These contracts includeproppant supply, as well as logistics and well site services.
“As the leading supplier of proppant in the WesternCanadian Sedimentary Basin (“WCSB”), we are proud to partner withthese valued customers as they ramp-up their completionsprogrammes,” said Brad Thomson, Chief Executive Officer of Source.“Our ability to provide certainty of both supply and logistics totheir well sites means we are able to ensure smooth, continuousoperations.
MAJOR PRODUCER EXTENDS CONTRACT UNTIL2024
The major Montney Producer has extended itsrelationship with Source by entering into a new contract commencing onJanuary 1, 2022. The agreement will see Source provide proppant andrelated logistics services, as well as field solutions for thisProducer’s Montney assets in Northeast British Columbia andNorthwest Alberta. The revised agreement will continue until May2024.
“By the end of this contract extension, Source andthis Producer will have been working together to set a new standard ofcompletion efficiency in the WCSB for over a decade,” commentedScott Melbourn, Chief Operating Officer of Source. “We are excitedto continue this partnership and drive the next level of completionefficiency.”
NEW PIPESTONE CONTRACT
Source is excited to enter into a new contract withPipestone that will see Source supplying proppant, logistics services,and field solutions using Source’s industry-leading Sahara well siteproppant storage unit. The contract runs until the end of 2022.
Due to the proximity of Pipestone’s well sites toSource’s Wembley terminal, Source can ensure short cycle times and areduced number of trucks on the road, resulting in numerous ESGbenefits for Pipestone’s completion program.
“We are thrilled that two of the leading operators inthe WCSB have trusted Source for their proppant and relatedservices,” commented Mr. Thomson. “These contracts are once againa testament to Source’s unmatched service offering in the Montney.The Montney continues to be Canada’s leading development region andwill see increasing activity levels in 2022 and beyond.”
Source is a company that focuses on the supply anddistribution of high quality Northern White frac sand. Source providesits customers with a full end-to-end solution supported by itsWisconsin mines and processing facilities, its Western Canadianterminal network and its “last mile” logistics capabilities. Inaddition to its industry leading frac sand transload terminal networkand in-basin frac sand storage capabilities, Source also providesstorage and logistics services for other bulk oil and gas wellcompletion materials that aren’t produced by Source. Source has alsodeveloped Sahara, a proprietary well site mobile sand storage andhandling system.
Source’s full-service approach allows customers torely on its logistics capabilities to increase reliability of supplyand to ensure the timely delivery of their requirements for frac sandand other bulk completion materials at the well site. For more information about Source, please visit www.sourceenergyservices.com .
ABOUT PIPESTONE ENERGY CORP.
Pipestone is an oil and gas exploration and productioncompany focused on developing its large contiguous and condensate-richMontney asset base in the Pipestone area near Grande Prairie.Pipestone shares trade under the symbol PIPE on the TSX. For moreinformation about Pipestone, visit www.pipestonecorp.com .
Media Inquiries:
Meghan Somers
Communications Advisor
(403) 262-1312 (ext. 295)
msomers@sourceenergyservices.com
Investor RelationsInquiries:
Brad Thomson
Chief Executive Officer
(403) 262-1312 (ext. 225)
investorrelations@sourceenergyservices.com
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press releaseconstitute forward-looking statements relating to, without limitation,expectations, intentions, plans and beliefs, including information asto the future events, results of operations and Source’s futureperformance (both operational and financial) and business prospects.In certain cases, forward-looking statements can be identified by theuse of words such as “expects”, “estimates”, “forecasts”,“intends”, “anticipates”, “believes”, “plans”,“seeks”, “projects” or variations of such words and phrases,or state that certain actions, events or results “may” or“will” be taken, occur or be achieved. Such forward-lookingstatements reflect Source’s beliefs, estimates and opinionsregarding its future growth, results of operations, future performance(both operational and financial), and business prospects andopportunities at the time such statements are made, and, except as maybe required by law Source undertakes no obligation to updateforward-looking statements if these beliefs, estimates and opinions orcircumstances should change. Forward-looking statements arenecessarily based upon a number of estimates and assumptions made bySource that are inherently subject to significant business, economic,competitive, political and social uncertainties and contingencies.Forward-looking statements are not guarantees of future performance.In particular, this press release contains forward-looking statementspertaining, but not limited, to: expectations regarding demand for andsales volumes of sand beyond 2021, in light of the COVID-19 pandemic;expectations regarding improved egress and associated increased demandfor LNG; expectations regarding the price of proppants and sensitivityto changes in such prices; outlook for operations and sales volumes;expectations respecting future competitive conditions; industryactivity levels; expectations regarding market share; industryconditions pertaining to the frac sand industry; rail service;expectations regarding customer relationships and counterparty risk;drilling and well completion activity in 2021; expectations regardingthe impact of direct-source contracts; sand sales volumes and sandspot pricing in 2021; and Source’s objectives, strategies andcompetitive strengths; expectations regarding future working capitaland capital expenditures; the ability to secure future funding;expectations regarding fluctuations in foreign currency; expectationsregarding the severity and outcome of legal claims and proceedings;expectations regarding insurance coverage and proceeds; expectationsregarding the impact of climate change; risks associated withinformation systems and cyber security and operational risks. By theirnature, forward-looking statements involve numerous currentassumptions, known and unknown risks, uncertainties and other factorswhich may cause the actual results, performance, or achievements ofSource to differ materially from those anticipated by Source anddescribed in the forward-looking statements.
With respect to the forward-looking statementscontained in this press release, assumptions have been made regarding,among other things: proppant market prices; future oil, natural gasand natural gas liquids prices; future global economic and financialconditions; future commodity prices, demand for oil and gas and theproduct mix of such demand; levels of activity in the oil and gasindustry in the areas in which Source operates; the continuedavailability of timely and safe transportation for Source’sproducts, including without limitation, Source’s rail car fleet andthe accessibility of additional transportation by rail and truck; themaintenance of Source’s key customers and the financial strength ofits key customers; the maintenance of Source’s significant contractsor their replacement with new contracts on substantially similar termsand that contractual counterparties will comply with currentcontractual terms; operating costs; that the regulatory environment inwhich Source operates will be maintained in the manner currentlyanticipated by Source; future exchange and interest rates; geologicaland engineering estimates in respect ofSource’s resources; the recoverability of Source’s resources; theaccuracy and veracity of information and projections sourced fromthird parties respecting, among other things, future industryconditions and product demand; demand for horizontal drilling andhydraulic fracturing and the maintenance of current techniques andprocedures, particularly with respect to the use of proppants;Source’s ability to obtain qualified staff and equipment in a timelyand cost-efficient manner; the regulatory framework governingroyalties, taxes and environmental matters in the jurisdictions inwhich Source conducts its business and any other jurisdictions inwhich Source may conduct its business in the future; future capitalexpenditures to be made by Source; future sources of funding forSource’s capital program; Source’s future debt levels; the impactof competition on Source; and Source’s ability to obtain financingon acceptable terms.
A number of factors, risks and uncertainties couldcause results to differ materially from those anticipated anddescribed herein, including, among others: the effects of competitionand pricing pressures; risks inherent in key customer dependence;effects of fluctuations in the price of proppants; risks related toindebtedness and liquidity, including Source’s leverage, restrictivecovenants in Source’s debt instruments and Source’s capitalrequirements; risks related to interest rate fluctuations and foreignexchange rate fluctuations; changes in general economic, financial,market and business conditions in the markets in which Sourceoperates; changes in the technologies used to drill for and produceoil and natural gas; Source’s ability to obtain, maintain and renewrequired permits, licenses and approvals from regulatory authorities;the stringent requirements of and potential changes to applicablelegislation, regulations and standards; the ability of Source tocomply with unexpected costs of government regulations; liabilitiesresulting from Source’s operations; the results of litigation orregulatory proceedings that may be brought against Source; the abilityof Source to successfully bid on new contracts and the loss ofsignificant contracts; uninsured and underinsured losses; risksrelated to the transportation of Source’s products, includingpotential rail line interruptions or a reduction in rail caravailability or the impact of weather; the geographic and customerconcentration of Source; the impact of climate change risk; theability of Source to retain and attract qualified management and staffin the markets in which Source operates; labour disputes and workstoppages and risks related to employee health and safety; generalrisks associated with the oil and natural gas industry, loss ofmarkets, consumer and business spending and borrowing trends; limited,unfavourable, or a lack of access to capital markets; uncertaintiesinherent in estimating quantities of mineral resources; sandprocessing problems; implementation of recently issued accountingstandards; the use and suitability of Source’s accounting estimatesand judgments; and the impact of information systems and cybersecurity breaches.
Although Source has attempted to identify importantfactors that could cause actual actions, events, or results to differmaterially from those described in the forward-looking statements,there may be other factors, including those described under theheading “Risk Factors” in the AIF, that cause actions, events orresults not to be as anticipated, estimated or intended. There can beno assurance that forward-looking statements will materialize or proveto be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Theforward-looking statements contained in this press release areexpressly qualified by this cautionary statement. Readers should notplace undue reliance on forward-looking statements. These statementsspeak only as of the date of this press release. Except as may berequired by law, Source expressly disclaims any intention orobligation to revise or update any forward-looking statements orinformation whether as a result of new information, future events orotherwise.
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