Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Archie Meeties who wrote (63579)	3/31/2000 3:39:00 PM
From: The Ox	Respond to of 95453

Patterson Energy, Inc. Completes Acquisition of Four Contract Drilling Rigs SNYDER, Texas, March 31 /PRNewswire/ -- Patterson Energy, Inc. (Nasdaq: PTEN) announces the Company's consummation of the stock purchase agreement with the owners of 100% of the outstanding stock of WEK Drilling Co., Inc., a privately held, non-affiliated drilling company with its principal operations in Southeast New Mexico. The purchase agreement included the acquisition of four fully operable contract drilling rigs with complete labor crews, other related equipment and working capital of $1.2 million for a purchase price of $7.2 million. Three of the operable rigs have depth capacities greater than 12,000 feet with the other rig having a depth rating of 10,500 feet. The acquisition was funded using $5.66 million of proceeds from the Company's existing credit facility and 53,000 shares of the Company's common stock valued at $29.0625. Immediately following the closing, certain assets, unrelated to the oil and natural gas industry were sold back to one of the previous owners for a cash payment of $1.0 million. The Company's management was pleased with the acquisition commenting that . "the rigs, fully operational with complete crews, provide the Company with increased market share in a geographic area which is anticipated to provide significant operating leverage in the future should the underlying commodity prices remain strong." Patterson Energy, Inc., a Snyder, Texas based energy company, is one of the leading providers of domestic, land-based drilling services to major independent oil and natural gas companies. Patterson currently owns 123 drilling rigs (118 of which are currently operable) with operations in Texas, New Mexico, Oklahoma, Utah and Louisiana. Statements made in this press release that state the Company 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. In addition to the factors set forth above, other important factors that could cause actual results to differ materially include, but are not limited to, the impact of declines in the prices of oil and natural gas on the demand for the Company's services and the associated effect on day rates and rig utilization, industry conditions, integration of acquisitions, demand for oil and natural gas, and the 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 statement 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, 1999. Copies of this filing may be obtained by contacting the Company or the SEC. SOURCE Patterson Energy, Inc. CO: Patterson Energy, Inc.; WEK Drilling Co., Inc. ST: Texas, New Mexico IN: OIL SU: RLE 03/31/2000 14:12 EST prnewswire.com