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Ensign Energy Services Inc
Symbol ESI
Shares Issued 153,349,232
Close 2014-11-20 C$ 12.36
Market Cap C$ 1,895,396,508
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Ensign Energy releases ADR 1500S drill rigs

2014-11-21 11:39 ET - News Release

Mr. Bob Geddes reports

ENSIGN ENERGY SERVICES INC. LAUNCHES NEWEST & MOST POWERFUL AUTOMATED ADR

Ensign Energy Services Inc. has signed contracts for two of its new state-of-the-art ADR (automated drill rig) 1500S pad drill rigs for a major oil and gas operator in the Montney area of northeast British Columbia. The ADR 1500S is Ensign's most powerful, next-generation, automated, full-sized walking rigs. Ensign will roll out 24 of these new ADR 1500S rigs over the next 18 months. At an approximate cost of $25-million per rig, these advanced drilling rigs will further expand Ensign's fleet to offer additional resource-focused, land-based drilling rig solutions for the oil and gas industry. Each rig will generate 50,000 man-hours of work during the construction phase, and, upon completion, each operating rig will directly and indirectly employ more than 100 workers. The new ADR 1500S drilling rig will continue and further enhance Ensign's contribution to the value chain in future liquefied natural gas exports from Canada and around the world.

Wayne Kipp, senior vice-president of ADR Development, notes: "Our customers asked for a more powerful rig to drill long, lateral sections in horizontal wells, and a more agile rig to move quickly from pad to pad. The new ADR 1500S delivers just that and more. This advanced rig builds off-line double or triple stands while the rig is in full operation, with the ability to move to new well sites faster than other full-sized drilling rigs."

Ensign's ADR 1500S drilling rigs are designed and constructed in the company's global rig manufacturing facilities located in Houston, Tex., and Nisku, Alta. Approximately half of Ensign's current global fleet are automated drill rigs. Compared with conventional drilling rigs, the ADR 1500S is safer to operate; and offers enhanced controls intelligence, reduced environmental footprint, quick mobility and advanced communications between field and office.

President and chief operating officer Bob Geddes states: "In accelerating the build-out of the industry's most advanced automated rig, Ensign entrenches its position as a leader in directional drilling of deeper and more challenging resource plays. Our commitment to leading-edge technology, as highlighted by this newest line of powerful and agile automated drilling rigs, underlines Ensign's strategy to continue to grow its drilling presence around the world."

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