SUPERIOR ENERGY SERVICES ACQUIRES DRILLING LOGISTICS; SIGNS LETTER OF
INTENT TO ACQUIRE INTERNATIONAL SNUBBING SERVICES
For further information contact:
Robert Taylor, 504/362-4321
Greg Rosenstein, 504/362-4321
HARVEY, La, Sept. 11, 2000 -- Superior Energy Services, Inc. (NASDAQ:SESI)
today announced the acquisition of Drilling Logistics, Inc. and the signing
of a letter of intent to acquire International Snubbing Services, Inc.
(ISS) and its affiliated companies Southeast Australian Services Pty, Ltd.,
and Imperial Snubbing Services, Ltd.
Drilling Logistics manufactures, rents and repairs bottom hole assembly
components. The company has operations in Lafayette, La. and St. John's,
Newfoundland (Canada). Drilling Logistics will be merged into Superior-
owned Stabil Drill, the leading provider of hole openers, stabilizers and
mills along the Gulf Coast.
ISS is an international provider of rig-based well services including
workover, completion, snubbing, well control, sidetracking, re-entry and
drilling services. The company also manufactures and
markets its own hydraulic rigs and ancillary equipment required in its
drilling and well service operations. ISS has a fleet of 10 snubbing,
workover and drilling units, ranging in pulling capacity from 120,000 to
460,000 pounds, and one hydraulic drilling rig currently working in the
Gulf of Mexico. Also, ISS has an additional 600,000-pound pulling capacity
subbing unit and second drilling rig scheduled to be completed in the
fourth quarter of 2000. Headquartered in Arnaudville, La., ISS has
operations in the United States, Australia, Trinidad and Europe and working
agreements to operate in the North Sea, Venezuela and Brunei. The
transaction is scheduled to close in the fourth quarter of 2000, subject to
a number of customary conditions including the execution of a definitive
agreement.
"In addition to offering high quality products and services that complement
our current business mix, ISS and Drilling Logistics will serve as
important platforms for Superior's international expansion," said Terry
Hall, President and CEO of Superior Energy Services. "ISS is an innovative
company that has successfully expanded internationally as a result of
leading edge equipment, experienced personnel and strong customer
relationships. Drilling Logistics' international manufacturing capabilities
and established customer relationships will enhance Stabil Drill's
expansion. As the Gulf Coast market leader in certain drilling tools,
Stabil Drill is pursuing markets outside the region to enhance its growth.
Drilling Logistics can be the catalyst for that growth."
Superior Energy Services, Inc. provides a broad range of specialized
oilfield services and equipment primarily to major and independent oil and
gas companies engaged in the exploration, production and development of oil
and natural gas properties offshore in the Gulf of Mexico and throughout
the Gulf Coast region. These services and equipment include the rental of
liftboats, rental of specialized oilfield equipment, electric and
mechanical wireline services, well plug and abandonment services, coiled
tubing services and engineering services. Additional services provided
include contract operating and supplemental labor, offshore construction
and maintenance services, offshore and dockside environmental cleaning
services, the manufacture and sale of drilling instrumentation and the
manufacture and sale of oil spill containment equipment.
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 which
involve known and unknown risks, uncertainties and other factors. Among the
factors that could cause actual results to differ materially are:
volatility of the oil and gas industry, including the level of exploration,
production and development activity; risks associated with the Company's
rapid growth; changes in competitive factors and other material factors
that are described from time to time in the Company's filings with the
Securities and Exchange Commission. Actual events, circumstances, effects
and results may be materially different from the results, performance or
achievements expressed or implied by the forward-looking statements.
Consequently, the forward-looking statements contained herein should not be
regarded as representations by Superior or any other person that the
projected outcomes can or will be achieved.
