Dec 10 Precision Drilling Corp, Canada's
largest oil and gas drilling contractor, expects capital
expenditure to almost halve in 2013 as weak natural gas prices
slow drilling activity.
The company forecast capital expenditure of C$485 million
($490 million) for 2013. It expects to spend about C$920 million
Precision Drilling, which runs about a quarter of Canada's
onshore drilling rigs, said it will decommission 52 lower-tier
drilling rigs and exit the Tier 3 contract drilling business.
The company said it will take a related charge of between C$180
million and C$200 million in the fourth quarter.
In October Precision Drilling reported a 53 percent drop in
third-quarter profit as gas firms cut drilling in the face of
weak demand and sliding gas prices.