UTI Energy Corp., Houston has entered into three separate agreements to acquire six drilling rigs for $13.6 million cash. The company said the six rigs have an average depth capacity of 15,000 ft and will bring its fleet to 150 rotary drilling units.
The three transactions are expected to close by the end of the month.
Three of the new rigs are in service in Oklahoma and one in South Texas. The other two, including a silicon-controlled rectifier (SCR) electric rig capable of drilling to more than 20,000 ft, will be refurbished at a cost of $2.5 million, excluding drill pipe.
UTI said the SCR rig will be marketed in the second quarter of the year and the other rig in the first quarter.
Mark Siegel, UTI chairman, said, "Our strategy has been to grow the company through selective acquisitions." He said UTI has added about 20 rigs/year to its fleet during the past 3 years. Its rigs operate mostly in Texas, Oklahoma, New Mexico, and western Canada.
