Key Energy Group Completes Acquisition of Colorado Well Service and Oilfield Assets

Strategic Insights -

Key Energy Group, Inc., a leading provider of energy operations and services, has completed the acquisition of Colorado Well Service, Inc. and several oilfield service assets of TransTexas Gas Corporation. The total cash consideration for the three transactions was approximately $28 million, with $20 million allocated for the TransTexas Assets. The acquisitions strengthen Key Energy Group's presence in the natural gas-rich regions of Utah and Colorado.

Key Takeaways:

  • Key Energy Group completed the acquisition of Colorado Well Service, Inc. and the oilfield service assets of TransTexas Gas Corporation, totaling $28 million in cash consideration.
  • The acquisition includes 17 well service rigs and one drilling rig in Utah and Colorado, as well as 9 well service rigs, 80 oilfield trucks, and 173 frac and other tanks in Texas.
  • The TransTexas Assets also include pipeline and location construction equipment, wellhead and blowout preventer test equipment, and a large parts inventory.
  • Key Energy Group's Chairman and CEO, Francis D. John, emphasized the company's focus on natural gas production and its commitment to acquiring "attractive acquisitions" to strengthen its market position.
  • The acquisitions are expected to contribute to Key Energy Group's operating margins and provide opportunities for consolidation savings.
  • Key Energy Group has operations in major domestic onshore producing regions and in Argentina, providing a diversified energy operations portfolio.

Statistics:

  • $28 million: total cash consideration for the acquisition of Colorado Well Service and the oilfield service assets of TransTexas Gas Corporation.
  • $20 million: cash consideration allocated for the TransTexas Assets.
  • 17 well service rigs and 1 drilling rig: Colorado Well Service assets in Utah and Colorado.
  • 9 well service rigs, 80 oilfield trucks, and 173 frac and other tanks: TransTexas Gas Corporation assets in Texas.

Sources:

  • "Key Energy Group Completes Acquisitions" (businesswire.com, August 26, 1998)