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Trican Well Service Ltd. (TSX:TCW) ("Trican" or "the Company") is pleased to announce that its U.S. subsidiary, Trican Well Service, L.P. ("the US Operations"), has entered into a two-year minimum commitment contract for the provision of fracturing services to a major U.S. customer operating in the Marcellus Shale play. This work commitment is supportive of our recently announced $102 million capital budget increase with work under the contract expected to commence early in the 2010 fourth quarter. The Marcellus Shale play is a logical choice for geographic expansion as it is a large, low cost and growing market providing Trican with an opportunity to introduce its "EcoClean" fracturing fluid technology in many environmentally sensitive areas throughout the basin. By the end of 2010, we anticipate approximately 60% of the US Operations 350,000 horsepower will be committed to long term work arrangements as a result of this contract combined with other long term customer commitments.
Headquartered in Calgary, Alberta, Trican has operations in Canada, Russia, the US and North Africa. Trican provides a comprehensive array of specialized products, equipment and services that are used during the exploration and development of oil and gas reserves.
Forward-Looking Statements
This document contains statements that constitute forward-looking statements within the meaning of applicable securities legislation. These forward-looking statements are identified by the use of terms and phrases such as "will", "expected," "anticipate," "opportunity," and other similar terms and phrases. These statements speak only as of the date of this document and we do not undertake to publicly update these forward-looking statements except in accordance with applicable securities laws. These forward-looking statements include, among others:
- the expectation that Trican will introduce its "EcoClean" fracturing fluid technology to the Marcellus Shale play market;
- the expectation that operations in the Marcellus will commence early in the 2010 fourth quarter; and
- the anticipation that approximately 60% of the US Operations 350,000 horsepower will be committed to long term customer work arrangements.
Forward-looking statements are based on current expectations, estimates, projections and assumptions, which we believe are reasonable but which may prove to be incorrect and therefore such forward-looking statements should not be unduly relied upon. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: industry activity; the general stability of the economic and political environment; effect of market conditions on demand for the Company's products and services; the ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the ability to operate its business in a safe, efficient and effective manner; the performance and characteristics of various business segments; the effect of current plans; the timing and costs of capital expenditures; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its products and services.
Forward-looking statements are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks and uncertainties include: fluctuating prices for crude oil and natural gas; changes in drilling activity; general global economic, political and business conditions; weather conditions; regulatory changes; the successful exploitation and integration of technology; customer acceptance of technology; success in obtaining issued patents; the potential development of competing technologies by market competitors; and availability of products, qualified personnel, manufacturing capacity and raw materials. In addition, actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth under the section entitled "Risk Factors" in the Annual Information Form of the Company dated March 26, 2010, which is available on SEDAR at www.sedar.com.
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