2006 Incredible Record Number of Wells Drilled
LXES — Lexington Energy Services, Inc.
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Alberta’s oil sands are not your grandfather’s oil fields. Spread out over an area the size of Florida, their tar-like bitumen is too thick to flow to a well like conventional oil and requires the input significant energy to coax it from amongst the sand before it can be upgraded or diluted for pipeline transport. Each year companies indicate their intentions regarding budgets and Nickle’s Canadian Oil Regsiter gathers and reports that information for Canada and the oil sands.
Nickle’s noted, “Judging by the companies who have released their 2007 budgets it appears spending on oilsands projects will increase considerably in 2007 compared to 2006.
Oilsands spending by the 11 companies who have reported their budgets is set to rise to approximately $14.70 billion over 2006’s estimated $11.66 billion – a difference of $3.04 billion or 26%.
Oil and Gas service companies like Lexington Energy Services provide technology to help to unleash the oil sands incredible reserves are well-placed to capture a piece of the very large investments pouring into Alberta. Nickle’s also indicated that drilling in 2006 was very good.
2006 preliminary analysis shows 2006 had more oil wells drilled than in any year since the year 2000 and when final numbers are in, 2006 may be busiest oil drilling year since the oil boom of 1997. For all of 2006, operators drilled 23,184 wells.
Alberta’s oil sands’ reserves are second only to Saudi Arabia and less than 3 per cent has been produced so far. What’s more, only a quarter of the oil sands are even under development. Aimed at exploring the 75 per cent of the oil sands that remain untouched, Lexington Energy’s new drilling/coring rigs are small and fast as they cut core samples from the oil sands, where conventional seismic exploration doesn’t work.
And Lexington Energy’s growth prospects are further bolstered by the fact that they can produce their rigs in months as opposed to the 1-2 years it takes to build conventional rigs in North America’s super hot oil industry.
Lexington is at the right place at the right time.
Source: Lexington Energy Services Inc. and Nickle’s Canadian Oil Register
CONTACT: Lexington Energy Services Inc., Mark Procknow, Investor Relations, Calgary, 1-877-279-4550
About Lexington Energy Services Inc.: Lexington Energy Services Inc. manufactures and leases innovatively designed oilfield service equipment. Through their wholly owned subsidiary, Lexcore Services Inc., we also provide a range of drilling services to meet the growing needs of the oil and gas industry, including Alberta’s oil sands.
Forward-Looking Statements: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Lexington’s filings with the Securities and Exchange Commission which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
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