Complete Production Services Inc., Houston, (NYSE: CPX) has acquired the assets of Appalachian Well Services Inc., a provider of pressure pumping and E-line services in the Appalachian region, and certain operating assets of TSWS Inc., a provider of well-servicing, heavy haul and other related services in northern Louisiana, East Texas and southern Arkansas for a combined deal value of approximately $120 million in cash and stock.
The assets acquired from AWS include four conventional Appalachian frac spreads (approximately 17,000 horsepower), a new 20,000 horsepower Marcellus shale frac spread (to be deployed by year-end), seven cement spreads, 19 E-line units, two small coiled tubing units and support equipment.
Complete paid approximately $49.3 million in cash and 588,292 shares for the AWS assets. Complete will also pay for the completion of the Marcellus shale frac spread at a cost not to exceed $6.5 million. Additionally, Complete may pay up to an additional $5 million in cash if certain performance targets are achieved in 2009 through 2010.
The assets acquired from TSWS include 24 well-servicing rigs, three swab units, 17 haul trucks, rental equipment and other support equipment. Complete paid approximately $57 million in cash.
Complete chairman and chief executive Joe Winkler says, “These acquisitions are consistent with our long-term strategy of acquiring businesses with excellent reputations in new resource plays. As the Marcellus and Haynesville shales continue to develop, we will be well positioned to leverage the platforms provided by AWS and TSWS to take advantage of the increase in demand for our services.”
Complete is an oilfield-service provider focused on the completion and production phases of oil and gas wells.
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