Page 13 - NorthAmOil Week 27 2021
P. 13
NorthAmOil NEWS IN BRIEF NorthAmOil
Final fully processed stacks are expected to be accretive to cash flow per share and adjusted
delivered to the industry by Q3-2022. This pro- EBITDA per share and generate annual syner-
ject is supported by industry funding. gies of more than $15mn. Complements Pat-
PGS, July 6 2021 terson-UTI’s current customer base and allows
Patterson-UTI to accelerate its super-spec rig
Reveal Energy Services to count growth into a market with improving
demand. Enhances Patterson-UTI’s focus on
commercialise fracking reduced emissions, with additional rigs capable
of using natural gas as a primary fuel source.
pressure diagnostics stated: “As a leading provider of contract drill-
Andy Hendricks, Patterson-UTI’s CEO,
Reveal Energy Services announced today that surveyor to ensure the safe removal and transat- ing services in the United States, we are proud to
they have entered into a technology licensing lantic transportation of seven platforms includ- announce this transaction. Pioneer’s high-qual-
and development agreement to commercialise ing topsides and jackets with a combined total ity fleet of 17 drilling rigs in the US, of which 16
ConocoPhillips’ patented poroelastic response weight in excess of 45,000 mt. are super-spec, will be a valuable addition to our
measurement (PRM) technology, and the com- The work was led and executed by Aqualis- business. Additionally, many of these rigs are
panies will perform joint research and develop- Braemar LOC’s Canadian operation, with capable of substituting cleaner-burning natu-
ment in the PRM technology space. support from the group’s global decommis- ral gas for diesel, a technology that is becoming
Reveal Energy Services will integrate this sioning team including the UK, for the load-in increasingly important to operators for reduced
novel technology for mapping hydraulic frac- operations. emissions.
tures and real-time fracture monitoring into its Over 6,000 hours in total were spent on the “Following the closing of this transaction,
IMAGE Frac® service. IMAGE Frac, developed project, with the majority executed in 2020, in Patterson-UTI will own 166 super-spec rigs in
under an exclusive license from Equinor since the midst of the pandemic. The last shipment the United States, with almost half of these rigs
2016, provides simple, accurate, affordable frac- arrived in the UK in early 2021. Ninety-nine per equipped to utilise alternative power sources for
ture maps based on pressure measurements in cent of the material will be recycled. reduced emissions. Furthermore, this transac-
offset wells. It has been used to quantify fractures “Sable was a large and complex project in tion expands our geographic footprint into the
in more than 30,000 hydraulic fracturing stages that it consisted of seven platforms and subsea international markets with the addition of eight
in the US and Canada. infrastructure at five different locations. Our rigs in Colombia, where Pioneer has worked for
“We are delighted that ConocoPhillips has global reach enabled us to provide a seamless 14 years with an experienced operations team
chosen to collaborate with us,” said Sudhendu transition of expertise, supporting the removal and a well-established infrastructure. I want to
Kashikar, CEO, Reveal Energy Services. “This activities and load-in operations across the recognise the Pioneer employees for their hard
agreement propels Reveal Energy Services into Atlantic, despite significant restrictions imposed work in creating such an attractive company
a strong leadership position in hydraulic frac- by COVID-19,” said Ewan Browell, Head of with great performance for their customers,
turing diagnostics using low-cost pressure data. AqualisBraemar LOC’s Canadian operations. and I look forward to welcoming the Pioneer
Operators will be able to optimise completion AqualisBraemar, June 29 2021 employees to the Patterson-UTI family.”
designs and well spacing, not just for science Transaction and Timing: Under the terms
pads but for all projects. Reveal Energy Services of the transaction, Patterson-UTI will acquire
is leading a fracture diagnostics culture change INVESTMENT Pioneer Energy Services for aggregate consider-
to continuous monitoring with continual inno- ation of up to 26.275mn shares of Patterson-UTI
vation in software and services. Patterson-UTI Energy to common stock and $30mn of cash. As more fully
Since 2016, Reveal Energy Services’ R&D described in the acquisition agreement, all Pio-
has resulted in 12 issued patents and numerous acquire Pioneer Energy neer Energy Services debt is being retired in the
industry awards for innovation. The latest of transaction with a portion of such shares and
these is the recently released ORCHID® com- Services cash and with Pioneer Energy Services’ cash on
pletions evaluation platform, the industry’s only hand determined in accordance with the acqui-
software that integrates all sources of diagnostic Patterson-UTI Energy today announced that it sition agreement prior to closing. The number
data to empower profitable development deci- has entered into an agreement to acquire Pio- of Patterson-UTI shares to be delivered in the
sions faster. neer Energy Services Corp. for approximately acquisition is subject to downward adjustment
Reveal Energy Services, July 6 2021 $295mn, which includes the retirement of all if the VWAP of Patterson-UTI shares for the 10
Pioneer Energy Services’ debt. Consideration days prior to closing exceeds $11.00, in which
AqualisBraemar LOC wraps for this acquisition consists of the issuance of up case the shares to be delivered will be reduced
to 26,275,000 shares of Patterson-UTI common by 50% of the value exceeding $11.00 per share.
up decommissioning and stock plus payment of $30mn of cash. The trans- The transaction values Pioneer Energy Services
action is expected to close in the fourth quarter on a cash and debt free basis at approximately
removal of Sable platform of 2021, subject to regulatory approvals, custom- $295mn, assuming the issuance of 26.275mn
ary closing conditions and the approval of Pio-
shares of Patterson-UTI common stock at the
AqualisBraemar LOC, the energy and marine neer Energy Services’ stockholders. closing price of $10.14 on July 2, 2021, plus
consultants, has completed its assignment in Transaction highlights and strategic ration- $30mn of cash. Pioneer Energy Services’ con-
connection with the decommissioning and ale include: Adds 16 super-spec drilling rigs to vertible notes will convert into shares of Pioneer
removal campaign of the Sable Project off the Patterson-UTI’s current fleet of 150 super-spec common stock in accordance with their terms
coast of Nova Scotia, Canada. drilling rigs in the US. Expands Patterson-UTI’s in connection with the closing and will receive
AqualisBraemar LOC was appointed in geographic footprint with the addition of eight Patterson-UTI shares on the same basis as if the
2017 by ExxonMobil to act as marine warranty pad-capable rigs in Colombia. Expected to be notes had been converted prior to the closing.
Week 27 08•July•2021 www. NEWSBASE .com P13