Jun. 29, 2010 (Filing Services Canada) --
RMS Systems Inc. (RMS - TSX Venture), announces that it has incorporated a wholly owned subsidiary in the United States. The subsidiary is named Rigmanager Inc. and is incorporated in the State of Texas. US operations will be managed out of Houston.
Dave Hall, CEO of RMS stated that "the incorporation of our US subsidiary is the first step toward the expansion of RMS into the United States. We anticipate that Rigmanager Inc. will actively be marketing the RigManager System in the US commencing in August, 2010".
According to third party data obtained by RMS there are currently approximately 1552 oil and gas drilling rigs operating in the United States. In Canada, there are currently approximately 337 rigs operating. The planned entry into the US market provides RMS with an opportunity to grow at a significantly accelerated pace. In addition, as the RigManager System is essentially billed on a day rate basis the number of operating days of the drilling rigs is a key factor in RMS cash flow. In general, as a result of weather and ground conditions in Canada, drilling rigs in Canada operate only approximately 275 days per year. An active rig in the United States operates approximately 350 days per year. Dave Hall commented "it is not only the larger US market that appeals to RMS, it is also the fact that given the almost continuous operations of a US rig, the cash flow from our system installed on US rigs will be larger than that of the installations on Canadian rigs". RMS does not anticipate the operation costs in the US to be materially different from those in Canada. RMS anticipates that its charge out rates for the RigManager System in the US will be competitive to the US market.
It is the intention of RMS to hire US staff to manage the operations in the United States. RMS intends to immediately begin the process of recruiting and training American staff for its operations. RMS intends to continue to aggressively pursue marketing the RigManager System for rigs in the Canadian market.
The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. David Hall
RMS SYSTEMS INC.
Bay 10, 3419 12th Street NE
Calgary, Alberta T2E 6S6
Tel: (403) 717 9694
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Certain information, including rig count data, is based upon third party information. RMS has not independently verified this data. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although RMS Systems Inc. believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurances that the expectations of any forward-looking statements will prove to be correct. The nature of the agreements that RMS maintains with its industry partners provides that these agreements are, for the most part, terminable without notice and without penalty. In addition, these agreements provide that revenue is earned only while the drilling rig is in operation. As a result, RMS's revenues are impacted significantly by a reduction in drilling activity by its customers and the RMS expectations may be impacted significantly in the event a customer changes its drilling plans or otherwise terminates its relationship with RMS. RMS revenues are also significantly impacted by weather which on occasion limits drilling activities. RMS Systems Inc. disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise, except as required pursuant to applicable securities laws.
Source: RMS Systems Inc. (RMS - TSX-V)
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