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Calgary, Alberta CANADA, September 15, 2011 /FSC/ - RMS Systems Inc. (RMS - TSX Venture), ("RMS" or the "Company") is pleased to provide the following operations updates.
The Company currently has equipment installed on 28 rigs in Canada and 2 in the US. Additionally, the Company has been awarded the opportunity to install its system on an additional 10 rigs for the upcoming winter drilling season. These rigs are expected to operate for approximately 4 months commencing in December, 2011.
In addition, the Company is pleased to announce that it has successfully completed the first phase of field testing for its autodriller system. The test has been conducted on a rig in S.E. Saskatchewan, and the equipment will remain on the rig. The next phase of testing is to install 4 additional systems on rigs owned by different contractors that are drilling for different operators. This will test the Company's autodriller over a broad cross section of rigs and well types and confirm the Company's belief that the autodriller is ready for general use. The second phase of testing is expected to commence in less than 2 weeks. Upon successful completion of the second phase of testing, the Company anticipates full roll out of its autodriller in Canada and the US before the end of the year. An autodriller is used to provide constant weight on the drill bit as the well is drilled. Previously the Company leased autodriller systems from third parties. The development of its own autodriller system provides the Company with an additional product from which the Company can generate revenue.
With the award of 10 rigs for the winter drilling season, and the successful testing of the autodriller system, the Company anticipates having its equipment installed on 60 rigs at the end of 2011.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Dave 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. These risks include, but are not limited to a reduction in drilling activity in the United States and/or Canada. 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.
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Source: RMS Systems Inc. (RMS - TSX-V)
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