Boots & Coots Buys StrassCo for $10 Million
Boots & Coots has purchased StassCo Pressure Control LLC in Rock Springs, Wyoming, for approximately $10 million in cash. StassCo operates four hydraulic rig assist units in the Rockies' Cheyenne basin.
"Presence in the Rockies is a key to our strategy to expand North America land operations into prolific gas producing areas," said Jerry Winchester, president and chief executive officer. "Activity levels for snubbing services have been consistently high in the region. StassCo's outstanding reputation provides us with a strategic presence for significant growth in 2008 and beyond. In addition to realizing strong utilization rates on our hydraulic units, we expect to have pull-through opportunities for our other services. Traditionally that has been our experience once we establish a presence in a new market."
Wyoming is one of the ten largest domestic producers of natural gas. According to the Energy Information Administration, from 2000 to 2005 Wyoming grew from 9,900 to more than 23,000 producing and gas condensate wells. The advancement of underbalanced drilling techniques and well completion methods are driving growth in unconventional drilling plays in the Rockies, increasing demand for hydraulic workover/snubbing services.
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