Source: Enseco Energy
Enseco Energy Services Corp. has signed a letter agreement to acquire all of the outstanding securities of a private directional services company with operations in North Dakota and Wyoming.
The purchase price for the Acquisition is U.S.$2.35 million comprised of $1.5 million in cash payable at closing, an additional $550,000 in cash payable on December 31, 2010 and a $300,000 earnout amount which will be payable over a two-year period provided certain performance thresholds have been met. The Acquisition is subject to a number of closing conditions, including completion of satisfactory due diligence, and is expected to be completed on or before June 14, 2010.
The private company currently operates seven measurement while drilling (MWD) kits and related equipment primarily in the Bakken shale of North Dakota and is an industry leader in unmanned MWD operations. The existing management team, and the private directional services company's sales presence in Houston and Denver, are expected to remain with Enseco and will be an integral part of Enseco's growth in the Bakken and Rocky Mountain regions.
Due to continuing industry demand for directional and horizontal drilling services Enseco has also purchased an additional six MWD kits and 28 motors to be delivered within the second and third quarters of 2010.
Enseco's CEO, Mr. Lane Roberts stated "This acquisition and equipment purchase are continued steps in Enseco's growth particularly in the North American oil resource plays. We believe that the steps we have taken over the last six months have positioned Enseco to be a leader as a North American directional drilling service provider. To date, Enseco has grown it's job capacity from 6 to 47."
Enseco is a growing supplier of energy related services operating throughout United States and Canada providing directional drilling, production testing and swabbing services to the industry.