Bronco Drilling Acquires Eagle Well Services
Bronco Drilling Company, Inc., said that it has acquired Eagle Well Service, Inc. and related subsidiaries for $2.5 million in cash, 1,070,390 shares of Bronco common stock and the assumption of debt, net of working capital, estimated at approximately $3.0 million.
The purchase will include 31 workover rigs, 24 of which are currently working. The remaining seven rigs will be deployed periodically over the coming months with all 31 expected to be active by the end of the second quarter of 2007. Eagle currently operates in Oklahoma, Texas, Kansas, and New Mexico. Seventeen of the acquired workover rigs in the fleet are less than two years old.
Frank Harrison, Bronco's Chief Executive Officer, said, "Historic levels of drilling activity have served as a catalyst for expanding demand for well services. We anticipate this acquisition will be immediately accretive and allows Bronco to capitalize on service demand that is not tied directly to the drill bit. This is the first step in executing our diversification strategy. We believe the well services business is a natural complement to ours and an entree into more mid-to-late cycle assets that could provide insulation from cyclicality. Eagle is a company that has been around for more than fifty years and has a terrific operational reputation and strong customer base. We are extremely pleased that Kim Snell, majority owner, will join the Bronco team and participate in the continued growth of our Company."
Bronco Drilling Company, Inc. is a publicly held company headquartered in Oklahoma City, Oklahoma, and is a provider of contract land drilling services to oil and natural gas exploration and production companies.
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Company: Eagle Well Services more info
- Bronco Drilling Acquires Eagle Well Services (Jan 10)