Tesco acquires casing running business
Tesco Corp. said it has acquired all of the assets and the ongoing business of Bo Gray Casing Co. and A&M Tubular Maintenance from Houston-based Catalyst Group Inc. and its partners for $10.5 million.
By OGJ editors
HOUSTON, Nov. 8 -- Tesco Corp. said it has acquired all of the assets and the ongoing business of Bo Gray Casing Co. and A&M Tubular Maintenance from Houston-based Catalyst Group Inc. and its partners for $10.5 million. The cost includes $0.5 million in assumed trade liabilities and as much as an additional $5.5 million, payable out of continuing operations over the next 3 years, based on Bo Gray's performance.
Bo Gray operates mainly in East Texas and North Louisiana. During 2001, the company reported $20 million in revenues; those in 2002 are expected to reach $12.6 million.
Through this acquisition, Tesco said it plans to leverage Bo Gray's regional market experience to launch its own technology in land markets, with the intention to enter the offshore market.
Earlier this year, Tesco completed the successful application of its casing-drilling technology on a modified conventional drilling rig in South Texas adapted for ConocoPhillips (OGJ Online, Sept. 30, 2002). The application represented the first time that Tesco's proprietary casing-drilling products have been used on a conventional land rig modified to drill with casing, rather than on a specifically built rig, the company said.