Source Energy Services Ltd. announces the opening of its Fox Creek Unit Train Terminal

— January 16, 2018

— Photo courtesy Source Energy Services Ltd.

CALGARY, Dec. 21, 2017 /CNW/ - Source Energy Services Ltd. ("Source" or the "Company") is pleased to announce the commencement of operations at its newest unit train terminal in Fox Creek, Alberta and its 2018 capital budget.

The expanded Fox Creek terminal is unit train capable with over 3.8 kilometres of track and 35,000 metric tonnes of storage capacity. Source's Duvernay-based customers will benefit from the improved reliability of supply provided by this new large-scale storage solution in the region. The 24-hour terminal is located off Highway 43, just outside of Fox Creek.

The addition of a large volume terminal at Fox Creek further positions Source as the pre-eminent supplier of Northern White frac sand for the Montney and Duvernay basins. The Company's mine-to-well site service offerings and extensive distribution network allow Source to work collaboratively with its customers to support their increasing proppant requirements.

Source is also pleased to announce its 2018 capital budget of approximately $50 to $65 million, which includes $10 to $20 million on terminal expansion projects, $10 to $15 million for the development of additional proprietary Sahara sand delivery systems, $15 to $20 million on production facilities, and $9 to $12 million in mine development activities. Included in the production expansion spending is approximately $6 million of planned spending on the Blair facility that is being carried over from the 2017 capital budget.

ABOUT SOURCE ENERGY SERVICES

Source is a fully integrated producer, supplier and distributer of high quality Northern White frac sand primarily to the WCSB. Source provides its customers with a full end-to-end solution through its Wisconsin mine, processing facilities, rail assets, strategically located terminal network and "last mile" logistics operations. In addition, Source provides storage and logistics services for other bulk oil and gas well completion materials that are not produced by Source. Source's full-service approach allows customers to rely on its logistics capabilities to increase reliability of supply and to ensure the timely delivery of their growing requirements for frac sand and other bulk completion materials.

Forward-looking statements apply.