Greg, This is the PKD SESI news from PR News.........
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Parker Drilling and Superior Energy Services Announce Planned Merger
PR Newswire, Thursday, October 29, 1998 at 08:14
TULSA, Okla., Oct. 29 /PRNewswire/ -- Parker Drilling Company (NYSE:PKD)
and Superior Energy Services, Inc. (NASDAQ:SESI) jointly announced today the
execution of a definitive agreement to combine the two companies.
Under the terms of the agreement, each share of Superior common stock will
be exchanged for 0.9 shares of Parker. With the exchange of shares and
assumed debt of $25 million, the total current market value of the transaction
is approximately $168 million. The deal is expected to close in early 1999
and is subject to approval of Parker and Superior shareholders and the
customary regulatory approvals.
As a result of the transaction, Parker will issue approximately 26 million
new shares to current Superior shareholders, and will then have approximately
103 million shares outstanding after the closing of the transaction.
"Our merger with Superior Energy Services continues our long term
corporate strategy to expand this high-margin side of our business," said
Robert L. Parker Jr., Parker Drilling's president and chief executive officer.
"Superior's wide geographic presence and excellent reputation with Gulf of
Mexico operators, will allow Parker to expand our premium rental tool business
in deep offshore markets and internationally."
"Obviously, this transaction rewards our shareholders with a substantial
premium," said Terence Hall, Superior's chairman, president and chief
executive officer. "But more importantly, it will allow our existing business
lines to grow by accessing Parker's well-established international platform
and thereby further enhance shareholder value."
Superior provides oil tool rentals, well plug and abandonment services,
and other specialized products and services to oil companies operating in the
Gulf of Mexico and Gulf Coast land regions. Superior is headquartered in
Harvey, La.
In 1996, Parker acquired Louisiana-based Quail Tools, and barge drilling
contractor Mallard Bay Drilling. The same year Parker acquired the assets of
Bolifor, S.A., Bolivia's largest land drilling contractor, and in 1997, Parker
expanded its Gulf of Mexico presence with the purchase of Hercules Offshore
Corporation.
Parker, is an international provider of offshore and on-land drilling
services. The company's wide variety of equipment includes shallow water
jackups and offshore platform rigs, transition zone barge rigs and land rigs
which currently operate in 14 countries. Tulsa-based Parker, founded in 1934,
has operated in 49 nations.
This news release contains forward-looking statements under the Private
Securities Litigation Reform Act of 1995. Although the company believes that
these statements are based upon reasonable assumptions, the company can give
no assurance that its expectations will be achieved. Actual results may
differ materially due to various risks and uncertainties which are outside the
control of the company, such as market prices of oil and gas, the volatility
of such prices, governmental regulation and trade restrictions, worldwide
economic activity and political stability in major oil producing areas.
SOURCE Parker Drilling Company
-0- 10/29/98
/CONTACT: Ed Hendrix or Phil Burch, Investor Relations, or Tim Colwell,
Public Relations, all of Parker Drilling, 918-585-8221; or Terence Hall, CEO,
Robert Taylor, CFO; or Guy Cook, Investor Relations, all of Superior Energy
Services, 504-362-4321/
Companies or Securities discussed in this article:
Symbol Name
NYSE:PKD Parker Drilling
NASDAQ:SESI Superior Energy Svcs Inc
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