Secure had a successful and rewarding year in 2012. The Corporation achieved significant growth while creating value for our shareholders over the past year. Concerns over crude oil differentials, natural gas liquid pricing and natural gas fundamentals in North America are leading to cautious producer spending plans for 2013. There is optimism that producer capital programs will be revised upwards in the latter half of 2013 predicated on continued foreign investment, improved access to capital for producers, stability in crude oil pricing and a narrowing of differentials and further clarity on future liquid natural gas ("LNG") export facility developments. There have been a number of recent positive developments for oilfield activity in the Western Canadian Sedimentary Basin ("WCSB") including the approval of the Nexen/CNOOC and Progress/PETRONAS transactions and the Encana/PetroChina Joint Venture in the Duvernay play. The Canadian Association of Oilwell Drilling Contractors is forecasting a 6% year over year decrease in well counts and drilling operating days in the WCSB. Despite the flat well count, average well depth is expected to continue to increase and the total of metres drilled in the WCSB is expecting to climb from 2012. In the United States, drilling activity peaked in the first quarter of 2012 and weakened over the course of the year as producers high graded development programs, in general shifting from natural gas drilling to crude oil plays. Expectations are for the U.S. land rig count to trough at some point in early 2013 with improvement in subsequent quarters.
Secure's continued investment in new facilities in Canada and the United States in 2012 provides a basis for continued growth into 2013. Secure recently announced a 2013 capital expenditure program of $155.0 million. $15.0 million is carry over capital from 2012 projects related to the Judy Creek and Rocky FSTs. The Rocky FST and the Judy Creek FST are expected to be completed in the second quarter of 2013. $115.0 million is allocated to PRD growth initiatives including three FSTs, two SWDs and one landfill. The Corporation has started development of new Alberta SWDs at Edson and Kabob in the fourth quarter of 2012 and is in the planning stages of initiating new SWD projects at Keene and Stanley in North Dakota. All of these SWDs will be assessed for conversion to FST facilities pending regulatory approval and customer demand. It is expected that the majority of other PRD capital initiatives for 2013 will not have any material cash flow impact until 2014, which is typical considering the approval and construction timelines for these types of facilities. The DS division's growth initiatives include adding $15.0 million of solids control equipment allocated evenly between Canada and the United States. Secure's strong balance sheet has sufficient capacity to fund its capital program. The Corporation plans to fund the 2013 capital program through operating cash flow and available credit facilities. In addition to growth through capital projects, Secure expects market expansion attributed to increased demand for the Corporation's integrated service offerings through all stages of the value chain. Due to tighter regulatory and environmental standards, it is expected that producers will increasingly outsource their waste and water disposal needs as oil and gas by-products continue to increase. Secure's full-suite of services will continue to serve an existing and growing network of customers seeking end-to-end solutions for their waste handling needs.
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