Core Laboratories to Acquire Reservoirs, Inc.
HOUSTON, July 27 /PRNewswire/ -- Core Laboratories (NYSE: CLB - news) announced today that it has signed an agreement to acquire all of the outstanding shares of Reservoirs, Inc., a privately held company based in Houston, Texas. Reservoirs, Inc. provides reservoir description services to the oil industry and is a recognized leader in the geology and petrophysics of deepwater reservoirs.
Currently, Reservoirs, Inc. is performing a non-exclusive, regional geological and petrophysical study of deepwater sediments in the Gulf of Mexico. The study is expected to include 100 wells and has over 20 participants. Results from the study can be used in the planning of development wells to help maximize production and ultimate field recovery. In addition, study results can be used to design effective completion, fracture stimulation and gravel packing programs that increase daily production while minimizing future maintenance of productive zones.
Core Laboratories will issue 300,000 shares in exchange for all outstanding Reservoirs shares in a transaction that will be accounted for as a purchase. The transaction is expected to close effective 1 August, 1999. Reservoirs, Inc. recorded approximately $4,000,000 in petroleum services- related revenues during the past year. The company will continue to do business under the Reservoirs name because of its reputation for technology advancement and quality service to the oil industry.
''Merging with Core Laboratories should allow Reservoirs to capitalize on the knowledge gained from our deepwater Gulf of Mexico study and apply our deepwater capabilities for our clients active in offshore Brazil and West Africa,'' said Randy Miller, President of Reservoirs, Inc. ''Together with Core, we plan to enlarge our worldwide deepwater reservoir data base, which should benefit our clients' deepwater programs.''
''Reservoirs is an excellent addition to Core Laboratories as we continue to focus and expand our technologies for deepwater reservoirs,'' said Monty Davis, Core's Chief Operating Officer. ''Our combination will provide better service to our worldwide clients, especially those with major operations centered in Houston. To this end, Core plans further investment in additional technologies which will make Houston our premier Advanced Technology Center servicing the Americas. Reservoirs fits well into that strategy.''
Core Laboratories N.V. is a leading provider of proprietary and patented reservoir description, production enhancement, reservoir management and reservoir monitoring services. The Company has over 70 offices in more than 50 countries and is located in every major oil-producing province in the world. The Company's outlook is subject to various important cautionary factors as more fully described in the Company's 1998 Form 10-K filed 31 March, 1999, and in other securities filings.
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