The acquisition will expand Seawell’s Cased Hole Wireline and Slickline service offering in the United States.
Hamilton, Bermuda (December 16, 2010)
Seawell Limited (OSE: SEAW) today announced the acquisition of Gray Wireline from Centre Partners for 157.5 million on a debt and cash free basis. The Hart-Scott-Rodino waiting period has expired and the transaction has closed.
Seawell used existing cash reserves to complete the acquisition. For the nine months ending September 30, 2010, Gray Wireline delivered unaudited revenues of USD 67.8 million and EBITDA of USD 13.1 million with projected revenues of USD 95.4 million and EBITDA of USD 19.6 million for calendar year 2010.
Gray Wireline is the largest independent cased hole wireline company in the U.S. The company commands one of the youngest fleets in the industry with a total of 110 wireline units. Gray operates in 18 district locations providing the Company access to 85% of all active U.S. drilling rigs and generates a balanced revenue stream from liquids and gas. The Company is a leading provider of a full range of cased-hole wireline services in the Permian basin and in unconventional plays such as the Barnett, Marcellus, Haynesville, Bakken, Eagle Ford and Woodford shales. The Company operates 6 offshore units from Louisiana.
The Company’s senior executives average over 25 years of experience in wireline operations and services and lead a solid core of regional and district managers, engineers and operators with a total of 390 employees.
Seawell’s Chairman, Jorgen Rasmussen, said: “We are very pleased to welcome the Gray team to Seawell. This acquisition is an important step in our product and service expansion. Gray positions Seawell to become a complete cased hole wireline solutions provider in the U.S. land market. In addition, Gray will serve as a distribution network for TecWel and C6-Technologies products and services in the US”
Gray Wireline Chief Executive Officer Mark Harris commented: “We are very excited to combine Gray Wireline with Seawell. The access to advanced technologies and capital will further strengthen our ability to serve our customers needs and to grow by attracting and retaining the best people in the industry.”
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
SOURCE Seawell Limited
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.