Precision Fully Commercializes Automation Tech, Rolls Out ‘Alpha’ Brand

Alpha Brand — Precision Drilling Corporation

Precision Drilling Corporation has commercialized its automation services, rolling out its ‘Alpha’ technology brand, which includes the AlphaAutomation (previously referred to as Process Automation Control), AlphaApps and AlphaAnalytics core services.

Key to AlphaAutomation is its open platform, designed to host multiple drilling performance applications that consist of in-house, customer-developed or third-party applications. Precision has partnered with various industry leaders and currently has 15 revenue-generating AlphaApps either commercialized or in development.

“Without question, our Alpha technology offering significantly enhances Precision’s competitive positioning and our high-performance, high-value strategy,” said Kevin Neveu, president and chief executive officer. In a news release this morning, he stated: “We have drilled over 1,000 wells with AlphaAutomation and have successfully deployed this highly-scalable technology throughout North America.”

Running AlphaAutomation on super-triple rigs provides safe, cost-effective, consistent and repeatable drilling performance on all types of oil and gas wells, Neveu added, and he is excited to unveil of the Alpha design for the company’s digital technologies.

“Achieving this milestone is a result of three years of field-hardening the software, extensively training our crews and closely collaborating with our customers in order to overcome field acceptance hurdles and fully demonstrate the value our technology delivers.”

Currently on 32 systems across various basins in Canada and the U.S., Precision has contracted AlphaAutomation at commercial rates, earning expected returns and achieving more than 90 per cent utilization, which demonstrates the company’s commercial acceptance, according to management.

Precision intends to continue deploying Alpha technology across its standardized super-triple fleet as customers keep demanding lower drilling costs and improved capital efficiency. The company will add 24 more systems over the next year — a move already included in the previously-announced $60-$80 million capital budget for 2020.

During Precision’s recent Q3 2019 conference call, Neveu told analysts that current market conditions are ideal to commercialize the company’s automation technology.