WellDynamics Acquires Wood Group's Production Technology Business

WellDynamics has acquired the Production Technology (ProTech) business of John Wood Group PLC for an initial consideration of $24.5m plus an additional working capital payment.

The acquisition will combine WellDynamics' premier intelligent well systems with ProTech's permanent downhole, subsea and surface monitoring products creating a broad portfolio of advanced well technology solutions.

Derek Mathieson, director of Technology for WellDynamics, said, 'Both WellDynamics and ProTech have invested significantly in building their respective product portfolios and in technologies to improve the reliability of intelligent well products. Our product lines and reliability engineering capabilities are complementary and this acquisition will combine the expertise of WellDynamics and ProTech to deliver continuous improvement in world class SmartWell solutions.'

'Our ROC(TM) product range is now widely recognized as one of the best premium monitoring systems in the business,' explained David Blacklaw, General Manager of ProTech, 'We believe that the product pull-through opportunities make ProTech an excellent fit with the core activities of WellDynamics. We have already demonstrated this on many projects globally where we have worked closely with WellDynamics to serve our common customers.'

Within WellDynamics, the ProTech division will continue to provide its renowned high standard of solutions and services to the stand-alone monitoring market and the partnership will address the increasing customer demand for integrated flow control and monitoring systems. This is an important step for WellDynamics toward achieving the goal and vision of delivering comprehensive SmartWell(R)advanced well management solutions. The combined expertise and comprehensive product offerings of WellDynamics and ProTech will enhance clients' reservoir management capabilities through innovative and cost-effective reservoir monitoring and production optimization solutions.

Phil Longorio, CEO of WellDynamics, said, 'The intelligent well market is growing at an exciting rate. The combined energy of our people will enhance WellDynamics' industry leadership position and will allow us to respond to the ever increasing challenges of our clients to deliver new technologies which improve reservoir asset value.'

John-Paul Jones, President of Wood Group Logging Services, said, 'ProTech has been a good business for Wood Group and its talented management has created some excellent technology. Ultimately, however, we considered that ProTech was not core to our business, and that it would progress better under the ownership of Well Dynamics, who, along with its shareholders, are ProTech's largest customer.'