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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: IndioBlues who wrote (56263)	12/7/1999 10:07:00 AM
From: The Ox	Respond to of 95453

UTI looking good. Picked up more just before recieving this:UTI Energy to Acquire Assets of Schneider Drilling Corporation HOUSTON--(BUSINESS WIRE)--Dec. 7, 1999--UTI Energy Corp. (AMEX:UTI) today announced it has signed a definitive agreement to acquire the drilling assets of Schneider Drilling Corporation, a privately owned contractor with principal operations in east Texas, for $7.5 million cash. The drilling assets include three currently marketable land drilling rigs, major components for two additional rigs, approximately 70,000 feet of drill pipe and assorted spare drilling equipment and parts. The depth capacity of the rigs being acquired ranges from 16,000 to 20,000 feet. "We are committed to sustaining UTI's growth through acquisitions, and this is another step in that strategic plan," said Mark S. Siegel, UTI's Chairman. "We are pleased that we will be able to complete this transaction with available cash resources, leaving the Company's recently announced $65 million revolving credit facility completely available and still undrawn." Vaughn Drum, UTI's President and CEO, said, "This acquisition will immediately increase our marketable fleet from 11 to 14 rigs in the natural gas rich east Texas market. Next year, we plan to use the other major components acquired from Schneider to assemble two additional SCR rigs with an average depth capacity of approximately 18,000 feet at an estimated cost of $1.5 million per rig." UTI Energy is a leading provider of contract drilling and pressure pumping services in the continental United States. Upon completion of the purchase, UTI will have a total of 123 drilling rigs that provide drilling services primarily in Texas, Oklahoma, New Mexico, and the Rocky Mountains. The Company's pressure pumping subsidiary provides stimulation and cementing services in the Northeast. Statements made in this press release that state the Company's or management's intentions, beliefs, expectations or predictions for the future are forward-looking statements. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. Important factors that could cause actual results to differ materially include, but are not limited to, declines in oil and gas prices that could adversely affect demand for the Company's services, and their associated effect on day rates, rig utilization and planned capital expenditures, adverse industry conditions, difficulty in integrating acquisitions, demand for oil and gas, and ability to retain management and field personnel. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, including but not limited to, the Company's report on Form 10-K for the year ended December 31, 1998 and Forms 10-Q for fiscal 1999 reporting periods. Copies of these filings may be obtained by contacting the Company or the SEC. --30--mk/la* kr/la CONTACT: UTI Energy Corp. John Vollmer, 281/873-4111 or Sitrick And Company Tom Ekman/Jack Leone, 310/788-2850