Key Energy Services Acquires King Oil Tools
Key Energy Services has acquired the well service assets of Kings Oil Tools. The acquired assets, which are located in California, include 36 marketed well service rigs, 10 stacked well service rigs and related support equipment. Management anticipates that the acquired assets will contribute revenue of approximately $36 million in 2008. Total consideration paid for the transaction was approximately $45 million in cash.
Commenting on the acquisition, Dick Alario, Key's Chairman and CEO, stated, "We are excited to expand our presence in California, which today is Key's best performing division. The region is essentially all oil production and thus, has been stable for the last several years. We believe the acquired well service rig assets will allow us to better meet the needs of our California customer base."
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