Patterson-UTI Acquires Cleere Drilling
Cleere Drilling Company has sold its inventory of 17 land-based drilling rigs to Patterson-UTI Energy. The transaction also included 28 rig-moving trucks as well as other equipment and inventory.
The assets were acquired for $13.5 million in cash, 450,000 shares of Patterson-UTI Energy common stock, and a warrant convertible into an additional 325,000 common shares at a price of $26.75.
Cleere Drilling is headquartered in San Angelo, Texas, and operates in both the Permian Basin and South Texas/Gulf Coast oil and natural gas producing regions. Cleere was the largest privately held operator of land-based oil and natural gas drilling rigs in Texas. Crates Thompson Capital, a Fort Worth based private equity firm, invested in Cleere Drilling in 1999 to support the company's growth, and is a major shareholder.
Kirk Cleere, president of Cleere Drilling, stated, "We have been committed to growing our business since its inception in 1990, and have been particularly pleased with what we have achieved over the last three years with our financial partner, Crates Thompson Capital. We are excited for what this combination means for both our employees and customers, and look forward to continuing to provide the same level of service as we have at Cleere Drilling under the new Patterson-UTI flag."
Kelly R. Thompson, principal of Crates Thompson, added, "We are very pleased to have supported Kirk Cleere and his team to build Cleere Drilling into one of the ten largest land based drilling companies in the United States, and the largest privately held drilling company in Texas. We have also been a big fan of the Patterson-UTI business strategy. We look forward to being a supportive, long-term shareholder of Patterson-UTI and have high expectations for the future results of the combination."