The acquisition candidate concentrates on four categories of coil tubing applications: thru tubing fishing, thru tubing work over, coil tubing drilling, and pipeline clean out.
The acquisition candidate recently developed a jetting tool to clean down hole well bores, a market estimated to exceed $100 million per year. The patented jetting tool is capable of removing barium, calcium carbonate, calcium sulfate, cement, coke tar, filter cake and iron sulfides from the bores of oil wells. During the process of developing and improving the jetting tool, the company created a "Jet Motor."
The patent-pending Jet Motor design was crafted without elastomers, making it unique among down hole motors on the market today. The tool is short, an advantage in thru tubing operation. Additionally, most motors have a temperature range which affect operation; the Jet Motor is not affected by the heat associated with down hole operation.
The acquisition candidate manufactures a Rotating Tool (mechanically induced rotation which provides rotational alignment to reduce or eliminate the need to work the tool, thus reducing pipe stress and fatigue. The tool maximizes acceleration to a jarring device either in the up or down stroke.
Additionally, the company manufactures an energy-storing device in which stored energy is released instantaneously, accelerating the velocity of the string above the jarring mechanism, intensifying the impact in the hole.
The worldwide thru tubing motor industry exceeds $500 million annually. Grifco International estimates the addition of the product line will increase revenue in the first year of operation by as much as $20 million.
"At this time, GFCI has elected to forego naming the acquisition candidate until the due diligence process on inventory, assets, and technology is complete and the definitive acquisition agreement is signed. The due diligence process should be completed and the definitive agreement signed within sixty days," said Jim Dial, President and CEO of Grifco International.
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