DRECO ENERGY SERVICES SUBSIDIARY SIGNS CONTRACT
DRECO ENERGY SERVICES SUBSIDIARY SIGNS CONTRACT EDMONTON, Alberta, May 21 /PRNewswire/ -- Dreco Energy Services Ltd.
(NASDAQ-NMS: DREAF) today announced its 75 percent subsidiary Hitec Dreco A.S. signed a contract with AS Norske Shell for the engineering, construction and installation of the platform drilling facilities for the Troll Phase 1 Gas field offshore Norway. The formal contract which is expected to be consummated within a month will have a total value of approximately US $95 million.
The drilling facilities will consist of a mast, substructure, drilling machinery package, a mud module, and a utility and services module. The facilities will incorporate the latest technology in mechanized pipe handling, instrumentation and control, designed for consideration of safety, productivity, and the work environment. Engineering will commence immediately, construction is scheduled to commence in September, 1992, onshore testing of the completed product is scheduled to commence in December, 1993, and installation of the facilities on the platform is expected to be complete by December, 1994. Approximately US $18 million of the scope of supply will be manufactured by Dreco in North America and will be recognized in the normal course of business. The balance of the scope of supply will be provided by Hitec Dreco A.S. and its suppliers. Dreco recognizes its interest in Hitec Dreco A.S. as a joint venture and will recognize profits from Hitec Dreco's portion of the contract by the equity method. The Company's Class "A" Common Shares trade: In the U.S.A., on the NASDAQ National Market System under the ticker symbol DREAF. In Canada, on The Toronto Stock Exchange under the ticker symbol DRE.A. Dreco Energy Services Ltd. designs, manufactures, markets and leases drillingequipment, machinery, and drilling tools used in the drilling and servicing of oil and gas wells, worldwide. -0- 5/21/92 /CONTACT: Daryl W. Ferko, vice president-finance of Dreco Energy Services, 413-463-2065 (Edmonton, Alberta); or Jack Kehoe of Kehoe, White, Savage, & Company, 212-888-1616 (New York), for Dreco Energy Services/ (DREAF) CO: Dreco Energy Services Ltd.; Hitec Dreco A.S. ST: Alberta IN: OIL SU: CON
SH -- NY037 -- 2763 05/21/92 11:11 EDT
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|Date:||May 21, 1992|
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