Houston, May 15, 2000
Weatherford International, Inc. (NYSE: WFT) announced today that it had signed a letter of intent to acquire Alpine Oil Services Corporation (Toronto:ASL) for approximately $55 million in Weatherford common stock. In addition, Weatherford has also entered into a lock up agreement with the holders of approximately 34 percent of Alpine’s outstanding shares, pursuant to which they have agreed to vote for, and otherwise support, the transaction. The acquisition is subject to the approval of Alpine’s shareholders, Canadian regulatory and judicial authorities and Weatherford’s Board of Directors.
Alpine Oil Services, headquartered in Calgary, Alberta, offers services and products including underbalanced drilling, flow control, production testing and mechanical wireline operations. The acquisition of Alpine would extend Weatherford’s capabilities in both its Drilling & Intervention Services and Completion Systems divisions.
Specifically, Alpine’s separation technology and downhole pressure control product lines would enhance Weatherford’s leading role in underbalanced drilling systems. Alpine’s production testing and mechanical wireline services would be consolidated into Weatherford’s similar existing operations.
Underbalanced drilling is a fast-growing practice in the oil and gas sector that involves decreasing the density of the drilling medium so that the formation pressure is greater than or equal to the pressure leaving the bit. This technique significantly reduces skin damage to the formation and improves production. It also increases penetration rates, minimizes drilling problems and substantially lowers the cost of drilling fluids.
Houston-based Weatherford International, Inc. (http://www.weatherford.com) is one of the largest global providers of innovative mechanical solutions, technology and services for the drilling and production sectors of the oil and gas industry. Weatherford operates in over 50 countries and employs approximately 10,000 people worldwide.
Contacts:
Don Galletly (713) 693-4148
Weatherford International, Inc.
515 Post Oak Blvd, Suite 600
Houston, Texas 77027
713-693-4000