Grant Prideco Acquires Andergauge

Grant Prideco, Inc. has acquired Andergauge Drilling Systems (Anderson Group Limited). Andergauge is a leading provider of specialized downhole tools, including the well-known AnderReamer and AG-itator, and provides services related to these tools. The company is headquartered in Aberdeen, Scotland. This business will be included in the Company's ReedHycalog drill bit segment. ReedHycalog is a global leader in drill bit technology, manufacturing, sales and service and a provider of technological solutions to the worldwide petroleum drilling markets.

"Andergauge is synonymous with value added, innovative bottom hole assembly technology which is complementary to the drilling process," stated John Deane, president of ReedHycalog. "The company entered the marketplace in 1986 with the first commercial downhole adjustable gauge stabilizer. Still recognized as the market standard, this tool has provided the industry huge cost savings by creating two BHAs in one, thereby saving trips and enabling more drilling to be done in rotary mode."

The AnderReamer is an established concept in underreaming, delivering excellent performance with rotary steerable systems. This proven tool can drill casing shoe, pilot hole and underream in a single run, while enabling optimal bit selection to suit the formation. The AnderReamer is a perfect complement to ReedHycalog's industry leading position in bi-center bit technology for hole opening.

The AG-itator provides BHA excitement through pressure pulses to improve weight transfer to the bit. Use of the AG-itator can extend the boundaries of extended reach drilling with motors and enhance efficiency in less complex applications. It is ideal for conventional, coiled tubing and liner running applications. In addition, the AG-itator is finding application outside of the conventional drilling environment, assisting in casing runs and other non-drilling operations where friction reduction is important.

Grant Prideco CEO Michael McShane commented, "We are excited about adding the fast-growing suite of Andergauge downhole tools to our existing product lines. Andergauge brings a strong international presence, with approximately 70% of its business outside the United States. With the introduction of several new downhole products, Andergauge has expanded its range of tools to meet demanding drilling requirements. Additionally, by incorporating ReedHycalog's PDC and bit technology into Andergauge's product development, we believe significant opportunities exist for product line and technology enhancement."