Cliffs Drilling Announces Acquisition of Three Offshore Rigs
Thursday October 16 6:01 PM EDT
Company Press Release
HOUSTON, Oct. 16 /PRNewswire/ -- Cliffs Drilling Company (NYSE:CDG) announced today that it has entered into a letter
of intent to acquire 2 offshore platform drilling rigs, one self-propelled jack-up drilling/workover rig, and substantially all of the
assets used in the offshore contract drilling business of Well Services (Marine) Ltd., a Trinidad and Tobago Company (''Well
Services''). The purchase price is $47,000,000, consisting of $23,500,000 in cash and $23,500,000 of Cliffs Drilling Common
Stock, subject to certain closing and post-closing adjustments.
Closing of the acquisition is subject to execution and delivery of a definitive agreement, certain approvals and consents and
satisfaction of customary closing conditions to be contained in the definitive agreement. The closing of the acquisition is
expected to be on or before January 15, 1998.
The two platform rigs and the jack-up/workover rig are currently operating under contracts in Trinidad. In conjunction with the
acquisition, it is expected that Cliffs Drilling will employ substantially all of the employees of Well Services used in its offshore
contract drilling business.
Douglas E. Swanson, Chairman of the Board, President and Chief Executive Officer of Cliffs Drilling, said that ''The
acquisition will significantly expand our operations in Trinidad, where we currently own and operate one jack-up drilling rig,
and will further diversify our expanding drilling fleet to better service the growing needs of our customers. We are particularly
pleased that the acquisition will maintain substantially all of the offshore contract drilling business and employees of Well
Services, as we have enjoyed an excellent working relationship with Well Services since we commenced our operations in
Trinidad in mid-1996.'' Cliffs Drilling currently owns 14 jack- up drilling rigs, 11 land rigs, 5 mobile offshore production units
and one offshore platform rig.
Cliffs Drilling Company is an international offshore contract drilling company which provides daywork and turnkey drilling
services, mobile offshore production units and well engineering and management services.
SOURCE Cliffs Drilling Company |
