I am turning VERY BULLISH on the onshore drillers and PDS is at the top of my list. See our recent profiles on PDS and PTEN, which you can find under the Watch List Tab. The improving outlook for natural gas prices is EXTREMELY BULLISH for this entire sub-sector. Even a small increase in gas directed drilling will put upward pressure on rig rates, which are already climbing. - Dan
Precision Drilling Corporation (TSX: PD)(NYSE: PDS) ("Precision") announced today that it has been awarded a contract for a new build 1500 horsepower rig that will operate for one of its existing customers in the Middle East with deployment expected in mid-2015. The rig will be the ninth Middle East deployment since mid-2012. Construction costs associated with this rig in 2014 are included in the capital plan announced in April 2014.
Kevin Neveu, Precision's President and Chief Executive Officer, stated: "This rig award is an important step in the execution of our international growth strategy to serve high quality customers in technically challenging well applications. This new build deployment will follow the previously announced two ST-3000 rig deployments to Kuwait, which are on budget and are beginning operations slightly ahead of schedule, and the new build ST-2000 rig that is expected to be deployed to Saudi Arabia late in 2014. We are pleased to continue to grow our Middle East footprint, which is nearing the level of scale we need to generate the margins and returns Precision is accustomed to generating."