CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION AND STATEMENTS
Certain statements and information contained in this press release including statements related to the Company's financial flexibility and its positioning for future growth and expansion, the expectation of increased activity levels and operating margin contributions from Savanna's Australian operations, the expectation that the contribution from extra crews in Q1 2013 will exceed the costs incurred in the 2012 retention program, the expectation of lower future repairs and maintenance and re-supply costs in the Company's U.S drilling and Canadian well servicing division relative to Q4 2012 and of overall cost management improvements, the expectation of a long-term increase in well servicing activity, and statements that contain words such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may", "likely", "estimate", "predict", "potential", "continue", "maintain", "retain", "grow", and similar expressions and statements relating to matters that are not historical facts may constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995.
These statements are based on certain assumptions and analysis made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. In particular, the Company's expectation that the contribution from extra crews in Q1 2013 will exceed the costs incurred in the 2012 retention program is premised on actual results experienced to date in 2013 and current customer contracts and commitments. The Company's expectation of lower future repairs and maintenance and re-supply costs in the Company's U.S drilling and Canadian well servicing divisions relative to Q4 2012 and of overall cost management improvements, is premised on actual Q4 2012 costs being higher than historical and anticipated levels and cost management and process improvement initiatives currently underway. The Company's expectation of increased activity levels and operating margin contributions from Savanna's Australian operations is premised on increases in the number of rigs Savanna operates in Australia, the contracts in place with and communications with its customers in the region, and the general expectation that coal seam gas activity will increase in that country as plans for liquefied natural gas plants move forward.
The Company's expectation of a long-term increase in well servicing activity is premised on the increase in the number of oil and gas liquids based wells that have been drilled over the last several years and the required maintenance through the life of such wells compared to natural gas wells. The Company's estimate of its financial flexibility and its positioning for future growth and expansion is premised on its currently available debt, realizing its working capital and generating cash flows at current levels or better which in turn is premised on the pricing of the Company's services remaining at or improving from present levels while maintaining its current cost structure. Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Company's expectations. Such risks and uncertainties include, but are not limited to: fluctuations in the price and demand for oil and natural gas; fluctuations in the level of oil and natural gas exploration and development activities; fluctuations in the demand for well servicing and contract drilling; the effects of weather conditions on operations and facilities; the existence of competitive operating risks inherent in well servicing and contract drilling; general economic, market or business conditions; changes in laws or regulations, including taxation, environmental and currency regulations; the lack of availability of qualified personnel or management; receipt of regulatory approvals; the other risk factors set forth under the heading "Risks and Uncertainties" in the Company's Annual Management's Discussion and Analysis and under the heading "Risk Factors" in the Company's Annual Information Form; and other unforeseen conditions which could impact on the use of services supplied by the Company.
Consequently, all of the forward-looking information and statements made in this press release are qualified by this cautionary statement and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Company or its business or operations. Except as may be required by law, the Company assumes no obligation to update publicly any such forward-looking information and statements, whether as a result of new information, future events, or otherwise.
Savanna's management's discussion and analysis and audited consolidated financial statements for the year ended December 31, 2012, are available on Savanna's website (www.savannaenergy.com) under the investor relations section and have also been filed on SEDAR at www.sedar.com.
Savanna will host a conference call for analysts, investors and interested parties on Friday, March 8, 2013 at 9:00 a.m. Mountain Time (11:00 a.m. Eastern Time) to discuss the Company's fourth quarter and year-end results. The call will be hosted by Ken Mullen, Savanna's President and Chief Executive Officer and Darcy Draudson, Vice President, Finance and Chief Financial Officer.
If you wish to participate in this conference call, please call 1-888-892-3255 (for participants in North America). Please call 10 minutes ahead of time.
A replay of the call will be available until March 15, 2013 by dialing 1-800-937-6305 and entering passcode 436282.
Savanna is a Canadian-based drilling and oilfield services provider with operations in Canada, the United States and Australia, focused on providing fit for purpose equipment and technologies.
Savanna Energy Services Corp.
President and Chief Executive Officer
Savanna Energy Services Corp.
Vice President Finance and Chief Financial Officer
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