EDC Finalizes Acquisition of Russian Drilling/Telemetry Contractor
Eurasia Drilling Company Limited ("EDC") announced that final agreements have been signed for the previously announced purchase of a domestic Directional Drilling/Telemetry contractor.
Under the agreements signed December 21, 2009, EDC subsidiaries have acquired 100% of the shares of OOO Tekhgeoservice (TGS), a Russian provider of wellsite directional drilling and telemetry services, and 25% of the shares of OOO BITAS, a Russian developer and manufacturer of proprietary telemetry equipment. On the same date, additional agreements were signed with OOO BITAS, covering servicing, modernization and priority purchase of telemetry equipment produced by OOO BITAS, at fixed prices to the Company. The total value of the acquisition is 1.1 billion rubles (approximately US $37 million).
TGS operations are being organized into a new directional drilling service line within the Company's wholly owned subsidiary, "OOO New Technology Services" ("NTS"). Other NTS service lines include provision of well cementing services and drilling fluids engineering.
Murray Vasilev, Sr. Vice President, Business Development for EDC, commented, "The Company continues to broaden the spectrum of well construction services we are able to provide in-house. With the acquisition of TGS, EDC will have sufficient telemetry equipment and personnel to field up to 60 directional drilling crews which should be able to provide the majority of EDC's conventional directional drilling requirements in coming years."