SAN ANTONIO, Jan. 3, 2012 /PRNewswire/ -- Pioneer Drilling
Company (NYSE Amex: PDC) ("Pioneer") announced today that it
has acquired Go-Coil, L.L.C., a Louisiana limited liability company
("Go-Coil") for approximately $110
million in cash. Go-Coil provides coiled tubing
services to exploration and production companies operating in
the United States onshore and
offshore oil and gas markets. Pioneer funded the purchase
price from cash on hand.
Go-Coil operates a fleet of 10 coiled tubing units (7 onshore
units and 3 offshore units) and related equipment. All ten
units were placed in service from 2009 to 2011. Six of the
onshore units primarily operate utilizing large-diameter 2" coil
and the remaining four units use 1.25" to 1.50" diameter
coil. Current operations are located in Louisiana (offshore and onshore), South Texas, Oklahoma, and Pennsylvania. Results from
the coiled tubing business will be included in Pioneer's Production
Services division. Go-Coil's seasoned management team brings
over 70 years of combined coiled tubing experience.
"We are excited to enhance our service offerings to include
coiled tubing in our Production Services division," said Wm.
Stacy Locke, Chief Executive
Officer. "Go-Coil's experienced management team and the young fleet
of coiled tubing units fit well with Pioneer's strategy to provide
our customers with excellent service and high quality
equipment. After studying coiled tubing for the past couple
of years, we believe this new service offering has expansion
opportunities as well as cross-selling opportunities with our
existing business. We expect this acquisition to be accretive
to earnings and contribute approximately $26
to $29 million of EBITDA in calendar 2012."
Fulbright & Jaworski L.L.P. acted as legal advisor to
Pioneer in connection with the transaction. Morgan Keegan acted as financial advisor to
Go-Coil in connection with the transaction, and Baldwin, Haspel,
Burke, and Meyer acted as legal advisor to Go-Coil.
About Pioneer Drilling Company
Pioneer Drilling Company provides contract land drilling
services to independent and major oil and gas operators in
Texas, Louisiana, the Mid-Continent, Rocky Mountain
and Appalachian regions and internationally in Colombia through its Pioneer Drilling Services
Division. Pioneer also provides well service rig, wireline and
fishing and rental services to producers in the U.S. Gulf Coast,
Mid-Continent, Rocky Mountain and Appalachian regions through its
Pioneer Production Services Division.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding
future events and is subject to risks and uncertainties.
Statements in this press release that are not historical, including
statements regarding Pioneer's or its management's intentions,
hopes, beliefs, expectations, representations, projections,
estimations, plans or predictions of the future, are
forward-looking statements and are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995. These risks, uncertainties and other factors include,
but are not limited to, the timing and success of Pioneer's
possible acquisitions, the ability to achieve the financial
performance anticipated by the Go-Coil acquisition, including
without limitation the forecasted EBITDA (income or loss before
interest, taxes, depreciation and amortization) performance for
2012, and other factors and uncertainties inherent in providing
contract drilling and production services discussed in Pioneer's
filings with the U.S. Securities and Exchange Commission.
Pioneer wishes to caution you that there are some factors that
could cause actual results to differ materially from any future
results, performance or achievements expressed or implied by such
forward-looking statements, including, but not limited to:
difficulty in integrating Go-Coil's services into Pioneer in an
efficient and effective manner; challenges in achieving strategic
objectives; the risk that our markets do not evolve as anticipated;
and the potential loss of the services of key employees of
Go-Coil. Pioneer refers you to the documents it files from
time to time with the SEC, specifically the section titled "Item
1A. Risk Factors" of Pioneer's most recent Annual Report filed on
Form 10-K and Quarterly Report filed on Form 10-Q, which contains
and identifies other important factors that could cause actual
results to differ materially from those contained in our
projections or forward-looking statements. Shareholders and
other readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date on
which they are made. We undertake no obligation to update
publicly or revise any forward-looking statements.
Contacts:
Lorne E. Phillips, CFO
Pioneer Drilling Company
210-828-7689
Lisa Elliott /
lelliott@drg-l.com
Anne Pearson /
apearson@drg-l.com
DRG&L/ 713-529-6600
SOURCE Pioneer Drilling Company, Inc.