Precision Drilling Corporation Subsidiary Executes an Agreement to Acquire Reeves Oilfield Services Limited
10 Maggio 2004 - 11:00AM
PR Newswire (US)
Precision Drilling Corporation Subsidiary Executes an Agreement to
Acquire Reeves Oilfield Services Limited CALGARY, May 10
/PRNewswire-FirstCall/ -- Precision Drilling Corporation
("Precision") announces that its wholly owned subsidiary, Precision
Holdings (UK) Limited has reached an agreement with the Board of
Directors of Reeves Oilfield Services Limited ("Reeves") on the
terms of a cash offer to acquire all of the issued and outstanding
shares of Reeves for pnds stlg 92.4 million, ( pnds stlg 88.4
million net of cash acquired, equivalent to Cdn.$218 million).
Under the agreement, the major shareholders of Reeves holding 73.6%
of the total Reeves shares have irrevocably undertaken to tender
their shares to the Precision offer. Reeves premier offering
consists of a highly reliable formation evaluation logging system
that may be conveyed on wireline or using an array of conveyance
alternatives such as drill pipe, tractors, or coil tubing. The
Reeves system design enables high quality logging data to be
recorded more efficiently than current competitors' offerings.
Reeves headquartered in the UK, currently has operations in the US,
Canada, Europe, Africa and Australia and employs approximately 490
people. "We are enthusiastic about the Reeves business model and
the quality of its people," said John King, Senior Vice President
Technology Services, Precision Drilling Corporation. "There is a
solid cultural and strategic fit between our two businesses
resulting in a combined opportunity that is greater than either
business could achieve separately." Post-transaction integration
will involve a collaborative effort to build on strengths the two
companies bring to the combined business with a focus on delivering
fit-for-purpose services to maturing oilfields across the globe.
"We are excited about the opportunity with Precision," said Rob
Hyde Chief Executive Officer for Reeves. "Our unique technologies
and entrepreneurial spirit coupled with Precision's broad offering
and international infrastructure provides a great catalyst for
expansion and extended market access." CIBC World Markets is acting
as exclusive financial advisor to Reeves in connection with this
transaction. Certain statements contained in this press release,
including statements relating to matters that are not historical
facts and statements relating to the strategic fit and integration
of Reeves are forward-looking statements. Such forward-looking
statements involve known and unknown risks and uncertainties which
may cause the actual results, performances or achievements of
Precision to be materially different from any future results,
performances or achievements expressed or implied by such
forward-looking statements. Such factors include fluctuations in
the market for oil and gas and related products and services;
competition; the ability to successfully integrate the operations
of Reeves; political and economic conditions in countries in which
Precision does business; the demand for services provided by
Precision; changes in laws and regulations, including
environmental, to which Precision is subject and other factors
which are described in further detail in Precision's filings with
the Securities and Exchange Commission. Precision Drilling
Corporation (TSX: PD, and PDU; NYSE: PDS) is a global oilfield
services company providing a broad range of drilling, production
and evaluation services with focus on fulfilling customer needs
through fit-for- purpose technologies for the maturing oilfields of
the 21st century. With corporate offices in Calgary, Alberta,
Canada and Houston, Texas, and research facilities in the U.S. and
Europe, Precision employs more than 10,000 people conducting
operations in more than 30 countries. Precision is committed to
providing efficient and safe services to create value for our
customers, our shareholders and our employees. DATASOURCE:
Precision Drilling Corporation CONTACT: Hank B. Swartout, Chairman,
President and Chief Executive Officer, or Dale E. Tremblay, Senior
Vice President Finance and Chief Financial Officer, Telephone (403)
716-4500; Fax (403) 264-0251; website:
http://www.precisiondrilling.com/; To request a free copy of this
organization's annual report, please go to http://www.newswire.ca/
and click on reports@cnw.
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