Patterson Energy to buy Jones Drilling

Patterson Energy Inc., Snyder, Tex., said Wednesday it is acquiring Jones Drilling Corp. for $36.2 million. The deal includes Jones' affiliates Henderson Welding, Inc., L.E.J. Truck and Crane, Inc., and LE Jones Drilling Co.


Patterson Energy Inc., Snyder, Tex., said Wednesday it is acquiring Jones Drilling Corp. for $36.2 million.

The deal includes Jones' affiliates Henderson Welding, Inc., L.E.J. Truck and Crane, Inc., and LE Jones Drilling Co.

The assets consist primarily of 21 drilling rigs (14 are operable and one will be in service by the end of the year), rig moving trucks, drilling facilities, shops, and equipment yards in Duncan, Okla., and Bridgeport, Tex. The rigs range from 450 to 1,000 hp with capacity ranging from 5,000 to 15,000 ft.

The Jones companies operate in southern Oklahoma, the Permian Basin of West Texas and Eastern New Mexico, and the Barnett Shale area of North Central Texas.

The purchase price will consist of 810,070 shares of Patterson's common stock and $14.5 million cash.

Patterson said the six non-operable rigs will require capital expenditures, including drill pipe, costing $4 to $6 million. Refurbishment of the six rigs is expected next year.

LaWayne Jones, founder of Jones Drilling, said, "We are particularly pleased that Patterson intends to continue to supervise drilling operations in Oklahoma from our offices in Duncan.''

Patterson owns 131 drilling rigs (123 of which are operable) with contract drilling operations in Texas, New Mexico, Utah, Oklahoma, and Louisiana.

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