The acquisition will expand Seawell’s Cased Hole Wireline and Slickline service offering in the United States.
Hamilton, Bermuda (January 27, 2011)
Seawell Limited (OSE: SEAW) today announced the acquisition of Universal Wireline from Patterson-UTI for USD 25.5 million on a debt and cash free basis.
Seawell used existing cash reserves to complete the acquisition.
Universal Wireline will be merged with recently acquired Gray Wireline expanding the capabilities of the largest pure play cased hole wireline company in the U.S. The combined companies will command one of the youngest fleets in the industry with a total of 136 wireline units and 6 offshore skids. Gray’s 23 operating districts cover over 85% of all active U.S. drilling rigs and generate a balanced revenue stream from liquids and gas. The company is a leading provider of a full range of cased-hole wireline services in unconventional plays such as the Barnett, Marcellus, Haynesville, Bakken, Eagle Ford and Woodford shales and in the Permian Basin.
The Universal acquisition contributes 26 wireline units — including 22 Artex built hydraulic units with an average age of less than 3 years and 4 mechanical units specific to work in Appalachia; 17 crane trucks with an average age of less than 3 years; and a wide assortment of logging and wireline tools. Universal also expands Gray’s area of operation by adding new districts in Rosharon and Alice in Texas; Dunbar and Buckhannon in West Virginia; and Tioga, in North Dakota.
Seawell’s Chairman, Jorgen Rasmussen, said: “We are pleased to welcome Universals employees to Seawell. Gray Wireline and Universal have a strong and talented team for the U.S. cased hole wireline market. We look forward to servicing Universal’s customers and to introduce our latest technology in production logging to them. Universal adds five districts strategically located to serve customers in the shale markets. “
Gray Wireline’s President, Mark Harris, added: “Gray is now ideally positioned to leverage the immediate opportunities in the U.S. market. The combination of Gray and Universal strengthens our employee and equipment base, and the commitment to our customers.”
Alpha Corporate Finance acted as Seawell’s financial advisors. Seawell’s legal advisors are Skadden, Arps, Slate, Meagher & Flom LLP.
Contacts for Seawell:
Jorgen Rasmussen +47 51 30 80 00
Thorleif Egeli +47 51 30 80 00
About Seawell Limited
“For the life of your well” — Seawell combines radical technology with the experience and skills of exceptional people to deliver a compelling range of products and services throughout the life of the well. Our specialist in Drilling, Engineering and Well services are focused on delivering wells safely and efficiently, securing well integrity and enhancing well performance: each service contributes to extending the productive life of your vital assets. Underpinning this activity is a deep commitment to continuous improvement; of the people, processes and technology that enable the quality of service we provide. And to innovation; to develop the solutions and technologies needed to overcome the challenges faced by our customers. In all we do, safety is paramount. The safety of people and the environment. Now and in the future.
Seawell is listed on the Oslo Stock Exchange with ticker symbol SEAW.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)