Page 14 - NorthAmOil Week 13

NorthAmOil
NEWS IN BRIEF
NorthAmOil
oil price war among OPEC+ members. These global events have caused a significant decline in oil prices globally, resulting in reductions in the planned spending of many of Calfrac’s clients.
In response to the reduced demand for Calfrac’s services, the board of directors
of Calfrac has approved a reduction of the company’s previously announced 2020 capital programme of approximately $100.5mn down to approximately $55.0mn. Calfrac has also reduced the number of crews being deployed in its North American operations from 19 fleets to nine, which will result in an aggregate reduction of approximately 40% of the company’s North American workforce. CALFRAC, March 27, 2020
BlockApps and Optimum
initiate strategic
partnership with
development of energy
usage tracking solution
BlockApps, the leading enterprise blockchain platform provider, is proud to announce their strategic partnership with Optimum, a leader in Modern Software Consulting across industries including oil & gas, manufacturing and construction.
Optimum has joined the Global BlockApps Partner Network – an ecosystem of technology and service providers combined with blockchain experts across industries that help enable rapid application development, integration, deployment and enhancement for BlockApps’ STRATO customers and partners.
Despite the intense pressure put on
the energy industry from recent global economic shocks, Optimum and BlockApps have initiated their partnership with the development of a blockchain-backed solution for tracking energy usage.
Verifiable, granular energy usage tracking is a mission-critical need for the energy industry and will be an essential part of any solution to improve management of future shocks in supply and demand.
Optimum’s significant experience with mid-stream and pipeline management for the oil and gas industry makes their addition to the BlockApps Partner Network especially timely and valuable.
BLOCKAPPS, March 27, 2020
Basic Energy Services announces actions in response to recent market volatility
Basic Energy Services today announced that
the company is implementing several cost control and capital preservation measures in response to the rapidly changing market outlook in a lower commodity price environment as well as market uncertainty related to the impact of the COVID-19 virus.
In addition to reducing projected 2020 capital expenditures 60% from the previously announced $43mn to $17mn and suspending all new capital lease additions, the company expects to reduce annual run-rate costs by approximately $20mn by taking the following actions immediately:
Enact cost controls across all business lines, including adjusting staffing to current activity levels and furloughs of all executive, office, and administrative staff;
Consolidate certain regional district operations and centralise specific business processes; and
Initiate the closure of selected, lower- performing locations.
The company expects to accomplish
these cost saving measures in addition to the previously announced synergies from the recent acquisition of the C&J Well Services business of approximately $17mn in operating expenses and G&A as well as capital synergies of $6mn in 2020.
BASIC ENERGY SERVICES, March 26, 2020
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Week 13 02•April•2020