ALY news out - it's a confirmed Katrina play now, but the investment community hasn't yet caught on (judging by the price action the last two weeks):
Entry into Material Agreement, Change in Assets, Financial Statements
ITEM 1.01 - ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On September 1, 2005, the Company's subsidiary Allis-Chalmers Tubular Services, Inc., formerly known as Jens' Oil Field Service, Inc. acquired from Patterson Services, Inc., a subsidiary of RPC, Inc. ("RPC") certain casing and tubing assets, for $15,683,116 in cash. The assets acquired consist of hammers, casing, casing torque turn equipment, trucks, elevators, drive pipe and laydown equipment used in the oil service industry.
SECTION 2 - FINANCIAL INFORMATION
ITEM 2.01 - COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS
The Company through it's wholly owned subsidiary Allis-Chalmers Tubular Services, Inc., formerly known as Jens' Oil Field Service, Inc., acquired the casing and tubing assets of RPC. (Please see Item 1.01 above). The Company paid RPC $15,683,116 in cash for approximately 10,000 pieces of equipment consisting of casing and tubing equipment, hammers, casing torque turn, elevators, laydown machines, trucks, drive pipe and certain inventory and disposable items used in the oil service industry for casing and tubing operations. The assets acquired are only used in casing and tubing operations in the oil service industry.
The Company believes that the acquisition of the assets does not constitute a business in accordance with SEC regulations. The Company did not acquire any books, records, accounts receivable or assume any liabilities of RPC. The Company also did not acquire any customer lists or customer contracts. The Company currently markets its casing and tubing services to many of the same customers as RPC did for its casing and tubing services. The equipment acquired is 5-15 years old and will be depreciated by the Company over 3-15 years. The Company intends to utilize the equipment acquired to expand its casing and tubing operations into Louisiana, the offshore Gulf of Mexico and east Texas and increase its equipment capability by deploying assets in existing locations in south Texas and Mexico. Currently the Company operates in south Texas and Mexico. The Company will integrate the assets and employees into the Company's current operations and expand geographically. Based on the foregoing, the Company believes that the assets do not constitute a "business" in accordance with SEC regulations. Accordingly, the Company will not provide historical or proforma financial information on the acquired assets.
SECTION 9 - FINANCIAL STATEMENTS AND EXHIBITS |
