SERVICE SECTOR / OTATCO Inc restructures to Enhance Growth
CALGARY, Feb. 4 /CNW/ - OTATCO Inc. (''OTATCO'') wishes to announce that
it has restructured its operations in order to enhance growth within its core
business units.
Three divisions will be merged into one creating a single Production
Solutions Services entity. Oil and gas well optimization services, Production
Management services and support technology (data management) will be merged
into the Production Solutions Services group. This combination will increase
efficiency, reduce costs, simplify OTATCO's Services presentation to
customers, and build on OTATCO's base of management projects which currently
exceeds 1,000 wells.
OTATCO's artificial lift tool division and its well diagnostic instrument
division will be merged into a single entity, the Products group. This
combination will reduce costs and increase marketing effectiveness. OTATCO
will continue to distribute its products through distributors, primarily
supply companies that sell and service artificial lift systems.
Both the Services and Products divisions will have dedicated marketing
personnel, and will retain most of their staff.
OTATCO's production engineering and management software products are not
considered to be core to either the Services or Products division. Therefore,
OTATCO will seek a new business arrangement for these products that maintains
support for the existing client base and maximizes the benefit for OTATCO's
shareholders.
Stephen Kenny has resigned as a director and officer of OTATCO and will
focus all of his energies on managing the new and larger Services division.
He will be replaced on OTATCO's Board of Directors by Robert Dunstan, Chief
Financial Officer.
David Yager, Chairman and Chief Executive Officer, will assume Mr.
Kenny's responsibilities as President and Chief Operating Officer of OTATCO,
as well as managing the new and larger Products division. |
