Superior Energy Climbs on Well Contracts

Superior Energy (SPN Quote) shares soared nearly 25% Thursday after the Louisiana oilfield-services firm fattened its pockets with a few new contracts to decommission several abandoned well properties off the coast of Louisiana.

Wild Well Control, a Texas-based subsidiary of Superior, will get $750 million combined from units of BP (BP Quote), Chevron (CVX Quote) and Apache (APA Quote), to help properly abandon the seven downed platforms and related well facilities. The work will take place 85 feet to 135 feet under water.

The project should take three years to complete, during which "revenue and income will be recognized using the percentage-of-completion method," according to Superior.

CEO Terence Hall said these agreements show that the companies have "confidence ... in [Wild Well's] work experience," the extensiveness of which he believes "makes us uniquely qualified to successfully execute this project."

Recently, Superior shares surged $6.76, or 19%, to $42.60.