Savanna Energy Services Corp. ("Savanna") and Fort McKay First Nation ("Fort McKay") are pleased to announce that Fort McKay-Savanna Energy Services Limited Partnership ("Partnership") has agreed to an initial purchase of approximately $19.5 million of equipment, funded by a combination of cash and capital contributions by Fort McKay and Savanna, and a Partnership-specific credit facility. The Partnership will operate the equipment in the Regional Municipality of Wood Buffalo this winter drilling season. The Partnership was formed earlier this year to provide drilling, well servicing and coring services as well as oilfield rental equipment in this region.
The equipment acquired consists of 125 pieces of oilfield rental equipment and well site accommodation units which have either been purchased new or will be transferred from Savanna's existing inventory, as well as two CT-1500 hybrid coring rigs and two workover rigs, which will be sourced from Savanna's existing fleet of equipment. The hybrid coring rigs and workover rigs are either contracted or committed for the winter season with large oil sands customers with significant operations near Fort McKay.
The Partnership has also opened its oilfield rentals shop and yard in the Caribou Energy Park located on the Fort McKay First Nation reserve. This location will be the regional office, distribution and service centre for the Partnership's oilfield rentals equipment as well as a support centre for its drilling and well servicing operations. Savanna and Fort McKay are pleased with this first equipment infusion to the Partnership and will continue to seek additional customer opportunities.
Fort McKay is a Cree, Dene, and Metis community located approximately 60 kilometres north of Fort McMurray and has a long history of providing high quality services to the energy industry through its joint venture businesses, and the Fort McKay Group of Companies. Fort McKay is continuing that tradition by partnering with Savanna to access opportunities in the surrounding oil sands regions by providing drilling, workover and rental services to energy companies operating in northeastern Alberta.
Savanna has had extensive experience working in partnerships with First Nation communities throughout Alberta since 2002. Savanna has been widely recognized for its partnership approach, winning the prestigious Alberta Chamber of Commerce "Aboriginal Partnership Award" in 2005 and 2012, as well as the Premier's Award of Distinction in 2010.
Savanna is a leading North American contract drilling and oilfield services company providing a broad range of drilling, coring, well servicing, and related services with a focus on fit for purpose technologies and industry-leading Aboriginal relationships.
