SERVICE SECTOR - SERV 10 LISTED / Canadian Fracmaster Acquisition
FRACMASTER AND TRANSTEXAS IN AGREEMENT FOR FRACTURE STIMULATION
BUSINESS
CALGARY, April 1 /CNW/ - Canadian Fracmaster Ltd. (TSE: CFC) and
TransTexas Gas Corporation (NYSE: TTG) jointly announced today that the boards
of directors of both companies had approved an agreement in principle whereby
Fracmaster would acquire certain assets of the oilfield service business of
TransTexas. The agreement provides for Fracmaster to acquire certain oilfield
stimulation, cementing and coiled tubing equipment and related facilities
owned by TransTexas and based in Laredo, South Texas. Terms of the agreement
were not disclosed.
Canadian Fracmaster President and C.E.O., Les Margetak, noted, ''This
acquisition will approximately double the size of our U.S. operations and
positions us for the first time in the active South Texas gas drilling
market. The U.S. is the world's largest onshore market for oilfield services
and is a key part of Fracmaster's plans for international expansion.''
Fracmaster presently serves markets in East Texas (including adjacent
areas of southern Arkansas and northern Louisiana), West Texas and Southeast
New Mexico. This acquisition will give Fracmaster complete coverage of the
entire Texas market where some 9,000 onshore wells are expected to be drilled
in 1998. Fracmaster is expected to continue to provide services to TransTexas
on a preferred, right-of-first-refusal basis.
The assets to be sold to Fracmaster represent only one segment of
TransTexas' integrated oilfield services business, which primarily provides
natural gas well drilling, completion, stimulation and workover services to
TransTexas and other operators in South Texas. After the $1.1 billion sale of
its Lobo Trend subsidiary in 1997 and drilling successes in the upper Texas
Gulf Coast area, including its Eagle Bay discovery, the services division has
focussed upon providing services to other operators in South Texas.
TransTexas said that it is considering additional transactions that will
together result in the recognition of substantial value from its service
company business, which includes a large fleet of 27 drilling rigs and 7
workover rigs, as well as the assets to be sold to Fracmaster.
Canadian Fracmaster Ltd. is an international oil and gas service and
production company, which is listed on the Toronto and Montreal Stock
Exchanges and trades under the symbol ''CFC''. For further information on the
Company, visit the Company's website at fracmaster.com.
TransTexas Gas is engaged in the exploration, production and transmission
of natural gas and oil, primarily in South Texas, including the new Eagle Bay
field in Galveston Bay. For more information on TransTexas, please visit at
transtexasgas.com. |
