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Released April 29, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)-- Precision Drilling Corporation (NYSE:PDS) (Calgary, Alberta), a service provider based in Canada's western provinces that also caters to the U.S. exploration market, is reaping the benefits of higher commodity prices and a tightening market for oil and gas rigs. The company expects demand for its services will continue its growth as customers seek to maintain production levels and replenish inventories, especially as drilled-but-uncompleted (DUC) wells have been depleted due to underinvestment in the oil and gas markets over the past few years. Industrial Info is tracking more than US$5 billion worth of active projects involving Precision Drilling across the U.S. and Canada.
Click on the image at right for a graph detailing Precision Drilling's active projects across the U.S. and Canada, by state or province.
"With the expected rise in North American industry activity in 2022, we anticipate further tightness in the high-specification rig market, with customers seeking term contracts to secure rigs and ensure fulfilment of their development programs," Precision Drilling said in a quarterly earnings-related press release. "Accordingly, the tightening of available high specification rigs is expected to drive higher day rates and necessitate customer-funded rig upgrades."
In anticipation of higher activity and additional contracted rig upgrades, Precision Drilling increased its capital-spending plan for full-year 2022 to US$125 million, including US$72 million for sustaining, infrastructure and intangibles, and US$53 million for expansion and upgrades. Net capital spending for 2021 totaled US$75.94 million.
In the U.S., Precision Drilling is running 55 active rigs, a 38% increase from first-quarter 2021 and a 12% increase from the start of 2022. The company has signed 19 term contracts in the U.S. since early February and expects activity to continue trending upward throughout the year.
Precision Drilling's U.S. slate includes active projects in the Bakken and Eagle Ford shale plays, two of the most prosperous areas for exploration and production companies. It is one of the contractors for Crescent Point Energy Corporation's (NYSE:CPG) (Calgary, Alberta) drilling program in North Dakota's Alamo Field, which involves drilling up to 20 new wells in the heart of the Bakken Shale. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read more in a detailed project report.
In the middle of the Eagle Ford Shale, Precision Drilling is at work on Baytex Energy Corporation's (Calgary) drilling program in Karnes City, Texas, which includes up to 14 new wells in the Longhorn, Sugarloaf, Ipanema and Excelsior fields. Subscribers can read more in a detailed project report.
In Canada, Precision Drilling says it peaked at 72 active rigs during the first quarter of 2022, with a 48% increase from average activity in first-quarter 2021. It is now running 33 rigs in Canada, compared with 20 rigs at this time last year, with stronger activity expected in the third quarter.
Click on the image at right for a map of Precision Drilling's active projects across Canada.
More than half of the investment value for Canadian-based projects involving Precision Drilling comes from two exploration and production companies: Tourmaline Oil Corporation (Calgary) and ARC Resources Limited (Calgary), which account for about US$1.31 billion and US$1.28 billion of investment, respectively.
Tourmaline's projects include two expansion and drilling programs in Alberta's natural gas fields: the Deep Basin sector near Edson, Alberta, where 80 to 90 new wells are to be drilled, and the Musreau area near Grande Cache, Alberta, where 30 to 35 new wells are to be drilled. Both projects began in March and are expected to last through the end of the year. Subscribers can find more details in Industrial Info's reports on the Deep Basin and Musreau projects.
ARC Resources' projects include two expansion and drilling programs in central British Columbia's natural gas fields, bordering Alberta: the Greater Dawson development in Rolla, British Columbia, where 37 new wells are to be drilled, and the Sunrise development in Farmington, British Columbia, where 31 new wells are to be drilled. As with Tourmaline, both projects began in March and are expected to last through the end of the year. Subscribers can find more details in Industrial Info's reports on the Greater Dawson and Sunrise projects.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Click on the image at right for a graph detailing Precision Drilling's active projects across the U.S. and Canada, by state or province."With the expected rise in North American industry activity in 2022, we anticipate further tightness in the high-specification rig market, with customers seeking term contracts to secure rigs and ensure fulfilment of their development programs," Precision Drilling said in a quarterly earnings-related press release. "Accordingly, the tightening of available high specification rigs is expected to drive higher day rates and necessitate customer-funded rig upgrades."
In anticipation of higher activity and additional contracted rig upgrades, Precision Drilling increased its capital-spending plan for full-year 2022 to US$125 million, including US$72 million for sustaining, infrastructure and intangibles, and US$53 million for expansion and upgrades. Net capital spending for 2021 totaled US$75.94 million.
In the U.S., Precision Drilling is running 55 active rigs, a 38% increase from first-quarter 2021 and a 12% increase from the start of 2022. The company has signed 19 term contracts in the U.S. since early February and expects activity to continue trending upward throughout the year.
Precision Drilling's U.S. slate includes active projects in the Bakken and Eagle Ford shale plays, two of the most prosperous areas for exploration and production companies. It is one of the contractors for Crescent Point Energy Corporation's (NYSE:CPG) (Calgary, Alberta) drilling program in North Dakota's Alamo Field, which involves drilling up to 20 new wells in the heart of the Bakken Shale. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can read more in a detailed project report.
In the middle of the Eagle Ford Shale, Precision Drilling is at work on Baytex Energy Corporation's (Calgary) drilling program in Karnes City, Texas, which includes up to 14 new wells in the Longhorn, Sugarloaf, Ipanema and Excelsior fields. Subscribers can read more in a detailed project report.
In Canada, Precision Drilling says it peaked at 72 active rigs during the first quarter of 2022, with a 48% increase from average activity in first-quarter 2021. It is now running 33 rigs in Canada, compared with 20 rigs at this time last year, with stronger activity expected in the third quarter.
Click on the image at right for a map of Precision Drilling's active projects across Canada.More than half of the investment value for Canadian-based projects involving Precision Drilling comes from two exploration and production companies: Tourmaline Oil Corporation (Calgary) and ARC Resources Limited (Calgary), which account for about US$1.31 billion and US$1.28 billion of investment, respectively.
Tourmaline's projects include two expansion and drilling programs in Alberta's natural gas fields: the Deep Basin sector near Edson, Alberta, where 80 to 90 new wells are to be drilled, and the Musreau area near Grande Cache, Alberta, where 30 to 35 new wells are to be drilled. Both projects began in March and are expected to last through the end of the year. Subscribers can find more details in Industrial Info's reports on the Deep Basin and Musreau projects.
ARC Resources' projects include two expansion and drilling programs in central British Columbia's natural gas fields, bordering Alberta: the Greater Dawson development in Rolla, British Columbia, where 37 new wells are to be drilled, and the Sunrise development in Farmington, British Columbia, where 31 new wells are to be drilled. As with Tourmaline, both projects began in March and are expected to last through the end of the year. Subscribers can find more details in Industrial Info's reports on the Greater Dawson and Sunrise projects.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
