Pioneer Drilling Acquires Go-Coil, L.L.C.
SAN ANTONIO, Jan. 3, 2012 /PRNewswire/ -- Pioneer Drilling Company (NYSE Amex: PDC) ("Pioneer") announced today that it has acquired Go-Coil, L.L.C., a Louisiana limited liability company ("Go-Coil") for approximately $110 million in cash. Go-Coil provides coiled tubing services to exploration and production companies operating in the United States onshore and offshore oil and gas markets. Pioneer funded the purchase price from cash on hand.Go-Coil operates a fleet of 10 coiled tubing units (7 onshore units and 3 offshore units) and related equipment. All ten units were placed in service from 2009 to 2011. Six of the onshore units primarily operate utilizing large-diameter 2" coil and the remaining four units use 1.25" to 1.50" diameter coil. Current operations are located in Louisiana (offshore and onshore), South Texas, Oklahoma, and Pennsylvania. Results from the coiled tubing business will be included in Pioneer's Production Services division. Go-Coil's seasoned management team brings over 70 years of combined coiled tubing experience. "We are excited to enhance our service offerings to include coiled tubing in our Production Services division," said Wm. Stacy Locke, Chief Executive Officer. "Go-Coil's experienced management team and the young fleet of coiled tubing units fit well with Pioneer's strategy to provide our customers with excellent service and high quality equipment. After studying coiled tubing for the past couple of years, we believe this new service offering has expansion opportunities as well as cross-selling opportunities with our existing business. We expect this acquisition to be accretive to earnings and contribute approximately $26 to $29 million of EBITDA in calendar 2012." Fulbright & Jaworski L.L.P. acted as legal advisor to Pioneer in connection with the transaction. Morgan Keegan acted as financial advisor to Go-Coil in connection with the transaction, and Baldwin, Haspel, Burke, and Meyer acted as legal advisor to Go-Coil.
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