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

To: SliderOnTheBlack who wrote (67533)	6/2/2000 3:49:00 PM
From: The Ox	Read Replies (2) \| Respond to of 95453

Patterson Energy, Inc. Finalizes Acquisition of Eight Drilling Rigs SNYDER, Texas, June 2 /PRNewswire/ -- Patterson Energy, Inc. (Nasdaq: PTEN) announces that the merger, as previously announced on February 7, 2000 between Patterson Energy, Inc. ("Patterson") and High Valley Drilling, Inc. ("High Valley"), has been consummated. The assets of High Valley consist of eight drilling rigs (four diesel-electric and four mechanical) and other related drilling equipment. The rigs range from 1,000 to 2,500 horsepower with three of the rigs having a depth rating of 25,000 feet and the other five rigs having depth capabilities equal to and greater than 15,000 feet. Consideration for the acquisition included 1,150,000 restricted shares of Patterson's common stock and three-year warrants to acquire an additional 127,000 shares at an exercise price of $22.00 per share. The former High Valley Shareholders have been granted certain demand and piggy-back registration rights with regard to the Patterson shares and warrant shares. The eight drilling rigs require certain capital expenditures including, but not limited to drill pipe. Patterson's management estimates that these expenditures will approximate $8 to $10 million. One of the rigs is currently operable with three additional rigs expected to be operational by the end of the year. The remaining four rigs are expected to enter the Company's operable drilling fleet by the end of the second fiscal quarter 2001. Cloyce A. Talbott, Patterson's Chairman and CEO, stated " ... The acquired assets represent quality equipment with operational capabilities indicative of Patterson's existing fleet. The rigs will further strengthen the Company's operations in the South Texas and Gulf Coast regions as well as enhance its operations in the Permian Basin and Mid-Continent areas." 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 131 drilling rigs (119 of which are currently operable) with operations in Texas, New Mexico, Utah, Oklahoma 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 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 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, 1999. Copies of these filings may be obtained by contacting the Company or the SEC. SOURCE Patterson Energy, Inc. CO: Patterson Energy, Inc.; High Valley Drilling, Inc. ST: Texas IN: OIL SU: 06/02/2000 14:23 EDT prnewswire.com