TSX: SHLE
CALGARY, Feb. 20, 2018 /CNW/ - Source Energy Services
Ltd. (TSX: SHLE) ("Source" or the "Company") is pleased to provide
the following operational update. Throughout January and early
February, Source experienced a number of weather related delays in
rail shipments from its Wisconsin
facilities. These temporary delays in rail shipments are expected
to be resolved in the coming weeks; however, their impact will
result in lower than expected first quarter frac sand sales.
Despite these temporary rail service issues, Source's
market-leading in-basin storage capacity enabled Source to set a
monthly record for in-basin sand sales in January. Since many
companies responded to these temporary weather issues by deferring
their completions programs to later in the year, Source expects its
unfilled Q1 sales orders will ultimately be filled throughout the
remainder of 2018. Therefore, these temporary delays are not
expected to impact Source's overall 2018 results.
Brad Thomson, CEO of Source
stated, "Weather related delays are part of doing business in
Canada. In order to offer
customers the certainty of supply they need, the only solution is
adequate in-basin storage. These recent interruptions to rail
service make us more committed than ever to the continued expansion
of our in-basin storage capabilities. In Q1 alone, Source will be
adding over 75,000 tonnes of additional frac sand storage in the
Montney and the Duvernay, resulting in an incremental annual
throughput capacity of approximately 1.8 million tonnes."
Scott Melbourn, COO of Source
said, "CN Rail continues to demonstrate its commitment to improving
its frac sand delivery services into the WCSB. CN Rail and Source
are taking a number of steps that will increase the reliability of
frac sand deliveries into the WCSB and mitigate the impact of
weather related service interruptions in the future."
ABOUT SOURCE ENERGY SERVICES
Source is a fully integrated producer, supplier and distributer
of high quality Northern White frac sand primarily to the WCSB.
Source provides its customers with a full end-to-end solution
through its Wisconsin mine,
processing facilities, rail assets, strategically located terminal
network and "last mile" logistics operations. In addition, Source
provides storage and logistics services for other bulk oil and gas
well completion materials that are not produced by Source. Source's
full service approach allows customers to rely on its logistics
capabilities to increase reliability of supply and to ensure the
timely delivery of their growing requirements for frac sand and
other bulk completion materials.
FORWARD-LOOKING STATEMENTS
Certain statements contained in this press release constitute
"forward-looking statements" or "forward-looking information"
(collectively, "forward-looking statements") within the meaning of
applicable Canadian and United
States securities laws relating to, without limitation,
expectations, intentions, plans and beliefs, including information
as to the future events, results of operations and Source's future
performance (both operational and financial) and business
prospects. In certain cases, forward-looking statements can be
identified by the use 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-looking statements
reflect Source's beliefs, estimates and opinions regarding its
future growth, results of operations, future performance (both
operational and financial), and business prospects and
opportunities at the time such statements are made, and Source
undertakes no obligation to update forward-looking statements if
these beliefs, estimates and opinions or circumstances should
change. Forward-looking statements are necessarily based upon a
number of estimates and assumptions made by Source 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 statements pertaining, but not limited, to:
expectations around frac sand sales and the operational impact of
opening new terminals; outlook for operations; industry activity
levels; industry conditions pertaining to the frac sand industry;
increased sales volumes of sand in 2018; and Source's objectives,
strategies and competitive strengths.
By their nature, forward-looking statements involve numerous
current assumptions, known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of Source to differ materially from those anticipated
by Source and described in the forward-looking statements.
With respect to the forward-looking statements contained in this
press release, assumptions have been made regarding, among other
things: proppant market prices; future oil, natural gas and natural
gas liquids prices; future global economic and financial
conditions; future commodity prices, demand for oil and gas and the
product mix of such demand; levels of activity in the oil and gas
industry in the areas in which Source operates; the continued
availability of timely and safe transportation for Source's
products, including without limitation, rail accessibility; the
maintenance of Source's key customers and the financial strength of
its key customers; the maintenance of Source's significant
contracts or their replacement with new contracts on substantially
similar terms and that contractual counterparties will comply with
current contractual terms; operating costs; that the regulatory
environment in which Source operates will be maintained in the
manner currently anticipated by Source; future exchange and
interest rates; geological and engineering estimates in respect of
Source's resources; the recoverability of Source's resources; the
accuracy and veracity of information and projections sourced from
third parties respecting, among other things, future industry
conditions and product demand; demand for horizontal drilling and
hydraulic fracturing and the maintenance of current techniques and
procedures, particularly with respect to the use of proppants;
Source's ability to obtain qualified staff and equipment in a
timely and cost-efficient manner; the regulatory framework
governing royalties, taxes and environmental matters in the
jurisdictions in which Source conducts its business; future capital
expenditures to be made by Source; future sources of funding for
Source's capital program; Source's future debt levels; the impact
of competition on Source; and Source's ability to obtain financing
on acceptable terms.
A number of factors, risks and uncertainties could cause results
to differ materially from those anticipated and described herein
including, among others: the effects of competition and pricing
pressures; risks inherent in key customer dependence; effects of
fluctuations in the price of proppants; risks related to
indebtedness and liquidity, including Source's leverage,
restrictive covenants in Source's debt instruments and Source's
capital requirements; risks related to interest rate fluctuations
and foreign exchange rate fluctuations; changes in general
economic, financial, market and business conditions in the markets
in which Source operates; changes in the technologies used to drill
for and produce oil and natural gas; Source's ability to obtain,
maintain and renew required permits, licenses and approvals from
regulatory authorities; the stringent requirements of and potential
changes to applicable legislation, regulations and standards; the
ability of Source to comply with unexpected costs of government
regulations; liabilities resulting from Source's operations; the
results of litigation or regulatory proceedings that may be brought
against Source; the ability of Source to successfully bid on new
contracts and the loss of significant contracts; uninsured and
underinsured losses; risks related to the transportation of
Source's products, including potential rail line interruptions or a
reduction in rail car availability; the geographic and customer
concentration of Source; the ability of Source to retain and
attract qualified management and staff in the markets in which
Source operates; labour disputes and work stoppages and risks
related to employee health and safety; general risks associated
with the oil and natural gas industry, loss of markets, consumer
and business spending and borrowing trends; limited, unfavourable,
or a lack of access to capital markets; uncertainties inherent in
estimating quantities of mineral resources; sand processing
problems; and the use and suitability of Source's accounting
estimates and judgments.
Although Source has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in its forward-looking statements, there may
be other factors, including those described under the heading "Risk
Factors" in the latest Prospectus, that cause actions, events or
results not to be as anticipated, estimated or intended. There can
be no assurance that forward-looking statements will materialize or
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. The
forward-looking statements contained in this press release are
expressly qualified by this cautionary statement. Readers should
not place undue reliance on forward-looking statements. These
statements speak only as of the date of this press release. Except
as may be required by law, Source expressly disclaims any intention
or obligation to revise or update any forward-looking statements or
information whether as a result of new information, future events
or otherwise.
SOURCE Source Energy Services
