SERVICE SECTOR / NQL Drilling Tools Closes Previously Announced
Acquisition of P&T Servicios Petroleros, C.A.
TSE SYMBOL: NQL.A
MARCH 19, 1998
NISKU, ALBERTA--NQL Drilling Tools Inc. ("NQL") announces that it
has closed the acquisition of the shares of P&T Servicios
Petroleros, C.A. ("P&T"), a Venezuela based private company which
provides rental equipment and services to its customers in the oil
and gas industry from its base in Ciudad Ojeda and two additional
facilities in Anaco and Barinas, Venezuela. The effective date of
the transaction is September 1, 1997.
The purchase price for all of the outstanding shares of P&T was
U.S. $8.1 million comprised of U.S. $4.9 million cash and the
issuance of 338,956 Class "A" Common Shares of NQL. The 338,956
common shares issued by NQL will be subject to a performance
escrow agreement with their release from escrow dependent on the
cash flow of the newly acquired business.
NQL, through its Downhole Tool Division, has previously operated a
joint venture with P&T for the supply of its Black Max(TM)
downhole motors in Venezuela. Consolidation of the P&T operation
with NQL will allow NQL to provide all of its downhole products
into Venezuela and capitalize on the increasing activity in the
Venezuelan oil and gas industry. Current P&T senior management
will continue to manage the consolidated Venezuelan operation
through long term management contracts.
NQL Drilling Tools Inc. is an industry leader in providing
downhole tools and technology primarily in horizontal and
directional drilling applications in the oil and gas,
environmental, utility and mining industries on a worldwide basis. |
