UTI Energy adds six rigs to fleet

UTI Energy Corp., Houston, said Friday it has entered into three separate agreements to acquire six drilling rigs for $13.6 million cash. It said the six rigs have an average depth capacity of 15,000 ft and will bring its fleet to 150 rotaries. The three transactions are expected to close by the end of the month.


UTI Energy Corp., Houston, said Friday it has entered into three separate agreements to acquire six drilling rigs for $13.6 million cash.

It said the six rigs have an average depth capacity of 15,000 ft and will bring its fleet to 150 rotaries. 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 an 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. We are constantly seeking those acquisition opportunities that we identify as providing exceptional value, in terms of both the quality of the equipment and the purchase price."

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.

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