Deep Well Services has shared it will add a new rig to its fleet that will allow the company to take on more projects related to high-pressure wells.
The Zelienople- based company’s COO John Sabo explained the company’s new potential with having the new rig:
This will be the next step for us to handle even higher-pressure wells that are out there throughout the basin. It’s an opportunity to highlight our talent and expertise and take it to the next level for our customers.
The rig, which is known as a “snubbing unit,” is a $2 million dollar investment, according to Sabo. It will be extremely import to exploration when it comes to exploring deeper parts of the Utica Shale in Ohio. Sabo mentioned producers are already dealing with gas pressures at levels that are abnormal from levels previously recorded in the shale formation. As reported by the Pittsburgh Business Times, Sabo said he “expects that Deep Well’s producer-customers will be incorporating more Utica wells into their 2016 drilling programs, based on conversations the company has been having with them.”
The new rig will be able to handle gas pressures that current rigs in the Utica Shale formation cannot. Sabo expects Deep Water Services to “take delivery of a service rig later this month, bringing its equipment fleet to eight.”
While expanding its rig fleet, Deep Water Services is also planning on having an estimated 190 people on its payroll by the end of the year.