Pioneer drilling buys Go-Coil for $110 mln (San Antonio, TX)

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By Mia Lamar

Pioneer Drilling Co. PDC +6.41% has acquired a privately held provider of coiled tubing services for roughly $110 million in cash, a purchase the company said it expects to add to earnings this year.

The purchase of Go-Coil LLC, whose services are aimed at oil and gas exploration and production companies, helps boost Pioneer’s offerings in its production services division, noted Chief Executive Wm. Stacy Locke.

“After studying coiled tubing for the past couple of years, we believe this new service offering has expansion opportunities as well as cross-selling opportunities with our existing business,” Locke said.

Go-Coil operates a fleet of 10 coiled tubing units, seven of which are onshore units. Current operations are located in Louisiana, South Texas, Oklahoma, and Pennsylvania.

Pioneer, which provides contract land drilling services to oil and gas operators, in November reported it swung to a third-quarter profit with help from a 38% jump in revenue.

Shares closed Friday at $9.68 and were inactive in premarket trade. The stock is up 51% in the past three months.

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Posted on January 3, 2012, in Louisiana, Oil & Gas - inland, San Antonio, South Texas and tagged , , , , , , , , , , . Bookmark the permalink. Comments Off.

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