Houston, December 02, 1998
Weatherford International, Inc. (NYSE: WFT) today announced a significant expansion of the scope of its work in intelligent completion systems. Specifically, Subsurface Technology AS, a Norway-based company partially owned by Weatherford, will merge with BEI Technology, Inc. and DataLine Petroleum Services, Inc. to form a new company, SubTech International, Ltd. (“SubTech”).
SubTech’s mission will be to develop cost-effective intelligent completion systems for the oil and gas industry. Post merger, Weatherford will own 51 percent of SubTech, with an option to buy the remainder of the company after five years.
“The combination of BEI, DataLine and SubTech into a joint venture with Weatherford’s Completions segment represents a major step forward for the development of reliable intelligent completion systems,” noted Weatherford’s CEO, Bernard J. Duroc-Danner. “Our customers place a high priority on cost-effective completion systems and have expressed interest in the systems SubTech is developing. Those systems will be designed to monitor downhole conditions as well as remote production control to optimize well performance and maximize asset recovery.”
SubTech International brings together critical technologies and service capabilities, including the following:
BEI Technology, Inc.: Houston-based designer and manufacturer of solenoids, motor drives, motor controllers, valves, pumps, single wire communication systems and transducers for drilling, completion and subsea applications. BEI’s products perform at well temperatures up to 400°F and pressures to 25,000 psi. BEI’s actuator systems are used in MWD and completion systems throughout the industry.
DataLine Petroleum Services, Inc.: Houston-based developer of proprietary data acquisition and analysis systems for reservoir evaluation, description and management to enhance field production economies. DataLine has also developed a unique, proprietary delivery system for electronic downhole measurement systems that can install and retrieve monitoring packages in all types of wells, including highly deviated wells. In addition to intelligent completion applications, DataLine products are also designed for optimizing gas lift wells by surface monitoring and control at the injection point.
Subsurface Technology AS: The Stavanger-based company is a leader in the installation of permanent downhole monitoring systems. To date, SubTech has installed more than 150 systems, principally in the North Sea. SubTech is also the designer for permanent gauge installations using DataLine’s delivery system.
Weatherford International, Inc.: Houston-based oil service company with a full line of completion capabilities including packers, inflatable packers, liner hanger systems, completion screens, cementation tools and tubular running services. Weatherford is also an industry leader in re-entry, fishing, artificial lift and compression services. Weatherford operates in more than 50 countries through a network of more than 425 sales, service and manufacturing locations.
Conceptual design of the SubTech system and component testing are underway. SubTech expects to have commercially available systems within 12 months.
SubTech will be based in Houston, Texas and Mark S. Crawford, formerly President of DataLine, will serve as its President.
Houston-based Weatherford International, Inc. is one of the largest global providers of engineered products and services to the drilling and production segments of the oil and gas industry.
Contacts:
Don Galletly, Weatherford (713) 693-4148
Mark Crawford, SubTech (281) 589-7373
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning, among other things, Weatherford's prospects for its operations and the integration of recent acquisitions, all of which are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in Weatherford International, Inc.'s Annual, Quarterly and Current Reports filed with the Securities and Exchange Commission, include the impact of oil and natural gas prices and worldwide economic conditions on drilling activity, the demand and pricing of Weatherford's products, as well as the ability to achieve the anticipated synergies and savings from the recent merger between EVI, Inc. and Weatherford Enterra, Inc. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated.
Weatherford International, Inc.
515 Post Oak Blvd, Suite 600
Houston, Texas 77027
713-693-4000