Allis-Chalmers Energy Expands Directional Drilling Services
Allis-Chalmers Energy recently acquired two companies, which have expanded its directional drilling capabilities. Coker Directional, Inc. and Diggar Tools, LLC were purchased for an aggregate purchase price of approximately $15 million. Together, these companies add six directional drillers and 115 downhole motors to Allis-Chalmers' directional drilling operations.
Coker Directional operated in the Gulf Coast and Central Texas regions, while Diggar Tools operated in the Rocky Mountains with offices in Denver, Colorado and Casper, Wyoming.
Micki Hidayatallah, Allis-Chalmers' Chairman and Chief Executive Officer, stated, "These acquisitions increase our geographic footprint in the Rocky Mountains, add equipment that would have taken at least one year to acquire and provide us with additional directional drillers and salesmen in complimentary areas of operation. We believe these acquisitions increase our reputation of excellence and quality in directional drilling and allow for increased flexibility in pricing for our directional services."
With these additional personnel and equipment, Allis-Chalmers expects to increase its overall utilization of directional drilling motors, reduce third-party motor rental expense, and enhance profitability. In addition, Allis-Chalmers anticipates expanding its service offerings in the Rocky Mountain region for straight-hole drilling motors (non-manned), directional motors and directional drillers.