Total Energy Services ups capital budget by 22% to $95.8 million
Increased expenditures will include the construction of a new 4,200-metre drilling rig.
CALGARY – Total Energy Services Inc. has raised its 2013 capital budget by nearly 22%, with the added spending going toward its contract services division, Chinook Drilling.
The Calgary-based company now plans to spend $95.8 million this year, an increase of $17.2 million.
The increased expenditures will include the construction of a new 4,200-metre drilling rig, which is set to be complete by the second quarter of next year.
Total says there’s “significant interest” in the new rig and discussions are underway. It expects to finalize contract terms closer to completion.
Once the new rig is built, Total will have 17 rigs in its fleet.
The company plans to finance its capital budget from cash on hand, operating cash flow and, if necessary its $35-million credit facility.
©The Canadian Press