PetroSun Drilling Acquires Stake in Bobcat Pipe & Supply
PetroSun Drilling Inc., an emerging provider of oilfield services, has acquired an 80% equity interest in wholesale oilfield services supplier Bobcat Pipe & Supply Inc. The equity interest was acquired from Tiger Energy Inc. in exchange for 4 million shares of PetroSun Drilling (PSUD) restricted common stock.
"PetroSun's acquisition of Bobcat Pipe and Supply highlights our core business strategy, to become the turnkey provider of choice for drilling, completion, exploration and production services," said L. Rayfield Wright, president of PetroSun. "The Bobcat acquisition not only brings PetroSun an immediate source of revenue with terrific margins, it's a great complement to our existing services by allowing us and our joint venture partners to readily control production expenses through increased efficiencies and lowered supply costs."
Bobcat Pipe & Supply has served the Ark-La-Tex region since 1993 as a wholesaler of diversified oilfield services and equipment including casing, tubing, rods, wellheads, pumping units, tanks, mud pumps, engines, valves, fittings and other industry-related equipment and supplies.
The present and future market for oilfield services is extremely favorable due to the increased demand worldwide for crude oil and natural gas. Under current market conditions, it is not uncommon for majors and independents to contract with oilfield service companies for up to a year or more to ensure the availability of drilling and workover rigs.
Current industry rig reports show a sharp rise in day rates, and operating income per rig has climbed 190% since the fourth quarter of 2004. There is no indication of this trend coming to an end, and current data suggests that the industry may be experiencing the first extended boom in land-based drilling in the United States since the 1970s and early 1980s.
PetroSun's current operations are concentrated in the Ark-La-Tex
region, with plans to expand into New Mexico, Arizona, Utah and
Australia in 2006. PetroSun provides a comprehensive array of products
and services to the oil industry. The company's cutting-edge
technologies, combined with a proven ability to apply them effectively
and safely within a disciplined ROI framework, creates long-term value
for PetroSun shareholders and partners. PetroSun is headquartered in
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