"Lexcore is extremely pleased to enter this agreement and proud of the relationship that we have developed with Laricina," said Brent Nimeck, Chief Operating Officer of Lexington, "we look forward to demonstrating the cost-efficiency of our next-generation rigs, and setting a new standard in drilling safety."
The coring of the first wells will commence on or about 15 December 2006. During oil sands coring operations, exploration companies drill evaluation holes up to 700 m deep to retrieve core samples every 3 m to evaluate the depth and grade of oil, pinpointing the most desirable locations for eventual extraction. Lexington's drilling packages are fully mobile and include a drilling rig, mud tank, core-van, and pipe-handling system.
Designed in close consultation with leading producers, Lexington's drilling/coring system is ideally suited for the exploration coring required for the massive amount of land poised for development in Alberta's oil sands. Lexington's advanced drilling/coring system is both dramatically smaller and faster than conventional rigs and is further set apart from the crowd by utilizing a true top-drive. More importantly, Lexington's system is produced for a fraction of the cost of conventional drilling rigs (despite garnering a much higher daily rate) and can be manufactured in months, as opposed to the years it currently takes to build a traditional drilling rig in North America's overheating oil industry. This leaves Lexington favorably positioned to meet the oil industries accelerating demand for such equipment.
About Lexington Energy Services Inc.
Lexington Energy Services Inc. manufactures and leases innovatively designed oilfield service equipment. Through our wholly owned subsidiary, Lexcore Services Inc., we also provide a range of drilling services to meet the growing needs of the oil and gas industry, including Alberta's oil sands.
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Lexington's filings with the Securities and Exchange Commission which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.
CONTACT: Lexington Energy Services Inc., Mark Procknow, Investor Relations, Calgary, 1-877-279-4550
