PRECISION DRILLING ACTIVATED 17 RIGS IN THE US IN Q1

May 14, 2017

For the first quarter, Calgary based Precision Drilling reported a revenue of $346 million, an increase of 15% over the prior year comparative quarter and a net loss of $23 million compared with a net loss of $20 million in the prior year comparative period. Kevin Neveu, Precision’s President and Chief Executive Officer, stated: “The rebound which began in mid-2016 has continued unabated through the first quarter of 2017. During the quarter, we activated 17 rigs in the U.S. growing from 39 to 56 operating rigs by the end of the quarter. In Canada, we experienced a seasonal peak of 91 active rigs, almost 50% higher than the same quarter of 2016 with our total drilling days up 71% over last year. With three consecutive quarters of increased activity, all signs point to a strengthening recovery and Precision has responded as promised, rehiring more than 2,000 field personnel and activating over 100 rigs from 2016 through activity.” During the first quarter, we experienced some increased costs, primarily due to repositioning rigs which included moving six U.S. rigs from the Marcellus and Bakken regions to the higher demand markets such as the Permian, where our active rig count is now 27 rigs. We also moved rigs to Oklahoma for SCOOP/STACK opportunities, the Niobrara and the Eagle Ford. Our customer contracts include provisions to recover most of these costs during the initial contract period.” (Source and image: Precision Drilling)