Bronco Drilling to Acquire Big A Drilling Company
Bronco Drilling Company has entered into a definitive purchase and sale agreement to acquire the assets of Big A Drilling Company, L.C., for consideration of $16.3 million in cash and Bronco common stock valued at $1.8 million.
The purchase includes six operating rigs, heavy haul trucks, and excess rig equipment and inventory. Three of the operating rigs are currently working in Oklahoma, two in Kansas, and one in Texas. The rigs have an average horsepower of 450. Upon the completion of this acquisition, Bronco's operating fleet will increase to 37 rigs and its inventoried rigs to be refurbished will increase to 27.
Frank Harrison, Bronco's Chief Executive Officer, said, "This is an accretive deal that will allow us to couple our lower horsepower rigs with the rigs in this acquisition and deploy them strategically into an identified basin perfectly suited for these assets. This acquisition will also give us the additional capacity to refurbish and deploy some of our lower horsepower rigs originally scheduled for the end of 2007. We believe this acquisition will allow us to deploy two to three additional rigs in 2006. We are pleased to be able to retain the key management of Big A and feel they will be instrumental in the continued growth of our Company."
The transaction is expected to close during the first quarter of 2006, and is subject to standard conditions to closing, including satisfactory conclusion of the Company's due diligence review.
Bronco Drilling Company, Inc. is a publicly held company headquartered in Oklahoma City, Oklahoma, and is a provider of contract drilling services to oil and natural gas exploration and production companies. Bronco's common stock is quoted on The Nasdaq National Market under the symbol "BRNC".
- Chesapeake, Bronco Enter MOU in Shareholder Lawsuit (May 18)
- Chesapeake Begins Tender Offer to Buy Bronco Drilling (Apr 26)
- Chesapeake Ropes Bronco Drilling (Apr 15)