|
Akita buoyed by stepped up activity
Gary Park Petroleum News Calgary correspondent
Akita Drilling, Canada’s northern pacesetter, made a solid second-quarter recovery as activity levels picked up.
The Calgary-based company, which focuses on Northwest Territories operations, posted profits for the three months of C$3.52 million, better than double last year’s C$1.63 million, pushing its first-half earnings to C$9.29 million on revenue of C$64,03 million from C$7.64 million and C$55.39 million, respectively, in 2002.
Cash flow from operations for the latest quarter was C$5.82 million compared with C$3.53 million last year, boosting the first half performance to C$15.88 million from C$14.55 million to the end of June 2002.
The company, with a fleet of 36 rigs, said it completed 596 wells to the mid-point of 2003 for a total of 3,645 operating days for a 56 percent rig-utilization rate. For the same period last year, Akita logged 618 wells, 3,154 operating days and a 48 percent utilization rate.
An increased emphasis on shallow natural gas prospects was a major factor in raising Akita’s utilization rate during a period of strong market conditions.
It said the improved activity levels have extended into the current quarter, with demand strong for shallow capacity rigs. Heavy oil pad rig planned The company announced in late June that it will construct a new heavy oil pad rig designed to operate under a multi-year contract with an unidentified senior oil and gas producer in Western Canada.
The design includes a self-moving system that will enable Akita to better serve the heavy oil drilling market.
The rig is scheduled for completion later this year at a cost of C$7.5 million. Precision revenues also up Precision Drilling, Canada’s largest contractor, reported second quarter profits of C$6.47 million, against C$1.41 million in the same period of 2002, Revenues for the three months grew by 10 percent to C356.6 million, the bulk coming from its Canadian operations.
Precision said its Canadian rigs totaled 5,605 operating days during the three months for a utilization rate of 27 percent, compared with 4,146 days and 20 percent last year.
The company accounted for about 41 percent of the 8,533 wells drilled during the first half by members of the Canadian Association of Oilwell Drilling Contractors. It owns 225 rigs, or slightly more than one-third of Canada’s fleet.
| 