Bermuda-based oil services provider Archer Limited is to acquire Great White Energy Services for $742 million on a cash and debt free basis, it was announced today.
The acquisition will give Archer an entry point into the rapidly expanding frac market and effectively double its coil tubing and directional drilling capacity in the United States where development of unconventional oil and natural gas shale plays continue to drive E&P investments. The combined company will be operational in all major oil and gas regions in the US.
Great White provides industry-leading pressure control including coil tubing and snubbing services, directional drilling, and pressure pumping including fracing and nitrogen services.
Its operations are primarily focused on the US onshore unconventional resource plays with locations in many of the prolific basins with strong drilling activity, primarily with an oil and liquids focus.
Great White's services are targeted at drilling and completing the horizontal wells that are critical in increasing the ultimate recovery in unconventional basins. It operates 13 service centers strategically located around the unconventional plays in Michigan, Oklahoma, Texas, West Virginia, Colorado, Arkansas and Wyoming which are highly complementary to Archer's existing locations with minimal overlap and integration risk. Archer's new pressure pumping division and its expanded pressure control divisions will be headquartered in Oklahoma City.
"Great White has an experienced management and operational team with an extensive track record in oilfield services and is a welcome addition to our US operations,” said Archer's President and CEO, Jorgen P. Rasmussen.
“This is another important step in our continued quest to create a global leader in drilling and well services that is focused on assisting our customers produce more hydrocarbons through their wells. We plan to take these services into the international areas in the coming years."
