Command Drilling Responds to Nabors' Offer
Command Drilling Corporation reported today that it has reviewed the September 17, 2001 announcement by 19552 Yukon Inc., an affiliate of Nabors Industries, Inc. of Nabors' intention to make a cash offer of $3.30 per share to acquire Command.
None of the Company's directors, officers or holders of employee stock options have entered into lock-up agreements with Nabors. "At this point, it is my feeling that the offer is opportunistic and inadequate," said Robert S. Bruce, President and CEO of Command. "I believe the price offered does not reflect the underlying value of Command's assets, nor does the offer reflect Command's financial and operational success in the year since we went public."
The Company established an Independent Strategic Committee of the Board on August 23, 2001 for the purpose of considering and evaluating, on an ongoing basis, the long-term, strategic direction of the Company. The unsolicited proposal from Nabors will be evaluated by the Strategic Committee, and a more detailed response will be communicated to the Company's shareholders on a timely basis.
Command Drilling Corporation is an oilfield services company providing contract drilling services to the oil and natural gas industry. Command currently owns 15 drilling rigs of various sizes and capabilities as well as related support equipment. A 16th rig is expected to be commissioned this fall. The Company began trading on The Toronto Stock Exchange under the symbol "CDZ" on June 5, 2000. Prior to that, it operated for more than 20 years as a private company.