SERVICE SECTOR / Airgen Corp. to Purchase Geo-Ray Oilfield
CALGARY, Feb. 12 /CNW/ - Airgen Corporation is pleased to announce that
it has entered into an Option Agreement to purchase Geo-Ray Oilfield
Inspections Ltd. The option agreement allows Airgen to acquire, on or before
March 21, 1998, all of the shares of Geo-Ray. The purchase price of
$4,000,000 plus adjustments, will be made up of cash in the amount of
$2,000,000 and Airgen Class A common shares valued at $2,000,000 at a deemed
price determined on the basis of the lower of (i) the average trading price of
the Class A common shares on the ten days trading immediately prior to the
closing of the transactions and (ii) $0.85. Airgen plans to complete the
acquisition of Geo-Ray, subject to due diligence and obtaining regulatory and
other approvals, through debt and equity financing to be obtained on or before
March 21, 1998. This transaction, scheduled to close at the same time as the
recently announced acquisition of Commercial Sandblasting and Painting Ltd.
(''Commercial''), completes Airgen's current expansion in the area of asset
integrity services. The method for determining the deemed share price for the
issuance of Class A common shares with respect to the acquisition of
Commercial will be on the same basis as for Geo-Ray.
Geo-Ray Oilfield Inspections Ltd. is a major provider of tubular
inspection and repair services for both production tubing and drillpipe.
Geo-Ray's central inspection facility is located in Red Deer, Alberta with a
satellite operation in Nisku, Alberta. Geo-Ray provides a comprehensive range
of tubular inspection, repair, storage and inventory management services for
both petroleum production companies and drilling contractors. In addition to
the plant facilities, Geo-Ray operates a fleet of mobile tubular inspection
units and drillpipe straightening units for wellsite or off-site service. The
acquisition of Geo-Ray extends Airgen's offering in the area of asset
integrity services, which currently includes pipeline testing and protective
coatings.
Airgen is a diversified oil and gas service company that provides the oil
and gas industry with (1) underbalanced drilling services, (2) heavy oil
thermal recovery services, and (3) asset integrity services. Airgen's goal is
to become a leading provider of oilfield services by acquiring and developing
successful private oilfield service companies, and investing in certain in
certain promising technologies.
Airgen Corporation is listed on the Alberta Stock Exchange and trades
under the symbol AIR.A.
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