(London & Dubai, 25 March 2019) ADES International Holding PLC ("ADES" or the "Group"), a leading oil & gas drilling and production services provider in the Middle East and North Africa (MENA), is pleased to announce that it has completed the acquisition transaction with Weatherford International plc ("Weatherford") and receipt of the final two onshore rigs in Algeria, and a further two rigs delivered outside of Southern Iraq for relocation to Saudi Arabia.
The acquisition cost was US$ 20 million for the Algerian rigs and an additional US$ 12 million for the Southern Iraq rigs, for a total consideration of US$ 32 million for the four rigs.
The transaction is the final segment of the previously signed definitive agreement with a subsidiary of Weatherford to acquire thirty-one onshore drilling rigs for a total consideration of US$ 287.5 million, including twelve rigs in Kuwait, eleven in Saudi Arabia, six in Algeria and two rigs delivered outside of Southern Iraq for relocation to Saudi Arabia.
Dr. Mohamed Farouk, Chief Executive of ADES, said: "With the Weatherford acquisition now complete, we have effectively tripled our fleet size and more than doubled our number of operating rigs across an expanded geographical footprint. Our strategy in 2019 will focus on organic growth and on capitalising on the increased tendering capacity afforded by the eleven uncontracted rigs acquired through the transaction. We expect to extract synergies from our larger fleet and are pushing forward an asset integration program to manage the rapid operational growth."
ADESInternationalHoldingextendsoilandgasdrillingandproductionservicesthroughitssubsidiariesandisaleading service provider in the Middle East and North Africa, offering onshore and offshore contract drilling as well as workover and production services.Itsc.4,000 employeesserveclientsincludingmajornationaloilcompanies("NOCs")suchas Saudi Aramco and Kuwait Oil Company as wellasjointventuresofNOCswithglobalmajorsincludingBPandEni. While maintaining a superior health, safety and environmental record, the Group currently has a fleet of thirty four onshoredrillingrigs,thirteen jack-up offshore drilling rigs, ajack-upbarge,andamobileoffshoreproductionunit("MOPU"),whichincludesafloatingstorage and offloadingunit. For more information, visit investors.adihgroup.com
Weatherford is one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry. The Company operates in over 80 countries and has a network of approximately 700 locations, including manufacturing, service, research and development, and training facilities and employs approximately 26,500 people. For more information, visit www.weatherford.com and connect with Weatherford on LinkedIn, Facebook, TwitterandYouTube.
Certainstatementscontainedinthisannouncement,includinganyinformationastotheGroup'sstrategy,plansorfuture financial or operating performance constitute "forward looking statements". These forward-looking statements can be identifiedbytheuseofforwardlookingterminology,includingtheterms"believes","estimates","anticipates","projects", "expects","intends","aims","plans","predicts","may","will","seeks"or"should"or,ineachcase,theirnegativeorother variationsorcomparableterminology,orbydiscussionsofstrategy,plans,objectives,goals,futureeventsorintentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout this announcement and include statements regarding the intentions, beliefs or current expectations of the Directors of the Company concerning, amongst other things, the Group's results of operations, financial condition and performance, prospects, growth and strategies and the industry in which the Groupoperates.
By their nature, forward looking statements address matters that involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward looking statements are not guarantees of future performance and the Group's actual results of operations and financial condition, and the development of the business sector in which the Group operates, may differ materially from those suggested by the forward-looking statements contained in this announcement. In addition, even if the Group's results of operations and financial condition, and the development of the industry in which the Group operates, are consistent with the forward- looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods.
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