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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 7, 2000
PATTERSON ENERGY, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-22664 75-2504748
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
4510 LAMESA HIGHWAY, SNYDER, TEXAS 79549
(Address of principal executive offices) (Zip Code)
(915) 573-1104
(Registrant's telephone number, including area code)
No Change
(Former name or former address, if changed since last report.)
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ITEM 5. OTHER EVENTS.
On February 7, 2000, the Registrant issued the following press release:
PATTERSON ENERGY, INC. EXECUTES AGREEMENT IN PRINCIPLE TO
ACQUIRE EIGHT DRILLING RIGS
Snyder, Texas, February 7, 2000 --- PATTERSON ENERGY, INC. (NASDAQ: PTEN)
announces that on February 4, 2000, Patterson Energy, Inc. ("Patterson") and
High Valley Drilling, Inc. ("High Valley"), executed an Agreement in Principle
whereby Patterson would acquire High Valley. 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
drilling capacity ranging from 10,000 to 25,000 feet. Consideration for the
acquisition will include 1,150,000 unregistered 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. Consummation of the acquisition is subject
to among other matters, the execution of a mutually agreeable definitive
agreement. Consummation is expected to occur during the first fiscal quarter of
2000.
The eight drilling rigs require certain capital expenditures including, but not
limited to drill pipe for each of the rigs. Patterson's management estimates
these expenditures to approximate $8 to $10 million. Three of the rigs are
expected to be operable by the end of the second fiscal quarter 2000 with the
remaining five rigs entering the Company's operable drilling fleet by fiscal
year end 2000.
Cloyce A. Talbott, Patterson's Chairman and CEO, stated "...we believe that the
diesel-electric rigs will enhance the Company's presence in the deep-onshore
natural gas markets and the four mechanical rigs will further enhance our
operations in the Permian Basin."
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 119 drilling rigs (114
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, 1998. Copies of
these filings may be obtained by contacting the Company or the SEC.
For further information, contact:
Patterson Energy, Inc.
Cloyce A. Talbott, Chairman and Chief Executive Officer
Jonathan D. (Jody) Nelson, Vice President-Finance, Chief Financial Officer
(915) 573-1104
[email protected]
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PATTERSON ENERGY, INC.
Date: February 9, 2000 By:/s/ Jonathan D. Nelson
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Jonathan D.(Jody) Nelson
Vice President-Finance
