TIDMADES
RNS Number : 1417J
ADES International Holding
03 December 2018
ADES Completes Acquisition of Drilling Operations from
Weatherford in Saudi Arabia
(London & Dubai, 03 December 2018) ADES International
Holding Ltd. ("ADES" or the "Group"), a leading oil & gas
drilling and production services provider in the Middle East and
North Africa (MENA), is pleased to announce that it has completed
the acquisition of eleven onshore rigs from Weatherford
International plc. ("Weatherford") in Saudi Arabia.
The transaction forms part of the previously signed definitive
agreement with a subsidiary of Weatherford to acquire thirty-one
onshore drilling rigs for a total consideration of $287.5 million
across Kuwait, Saudi Arabia, Algeria and Southern Iraq. ADES
continues to work towards closing the acquisition of the remaining
six Weatherford rigs in Algeria, with completion expected by the
end of 2018.
Transaction Highlights
-- Eleven rigs acquired for a total consideration of $92.5
million, financed through a combination of cash and secured debt
instruments
-- Nine out of eleven rigs currently contracted in Saudi Arabia
with a cumulative estimated backlog of $78 million.
-- Management is working to secure new contracts and extensions
for the newly acquired rigs, which it
expects will add new backlog before year-end.
-- The transaction includes Weatherford's associated assets in
Saudi Arabia, management systems and circa 923 employees and
contract personnel
-- The contracted rigs provide exposure to the natural gas market in Saudi Arabia
Dr. Mohamed Farouk, Chief Executive of ADES, said: "We have now
completed the majority of the Weatherford acquisition, which is
transformational for the group, significantly increasing our size,
visibility and exposure in the onshore market. We are also
particularly pleased to be deepening ADES' presence in KSA and
strengthening our relationship with our strategic customer there
who continues to place their confidence in us. We look forward to
finalizing the Algerian tranche of the Weatherford acquisition
before year-end and are optimistic about ADES's growth trajectory
during 2019".
-Ends-
Enquiries
ADES International
Holding
Hussein Badawy
Investor Relations
Officer ir@adesgroup.com +2 (0)2527 7111
Instinctif
+44 (0)20 7457
David Simonson david.simonson@instinctif.com 2020
+44 (0)20 7457
George Yeomans george.yeomans@instinctif.com 2020
+44 (0)20 7457
Sarah Hourahane sarah.hourahane@instinctif.com 2020
NOTES TO EDITORS
About ADES International Holding
ADES International Holding extends oil and gas drilling and
production services through its subsidiaries and is a leading
service provider in the Middle East and Africa, offering onshore
and offshore contract drilling as well as workover and production
services. Its over 3,400 employees serve clients including major
national oil companies ("NOCs") such as Saudi Aramco, Kuwait Oil
Company and Sonatrach as well as joint ventures of NOCs with global
majors including BP and Eni. While maintaining a superior health,
safety and environmental record, the Group currently has a fleet of
twenty-six onshore drilling rigs, thirteen jack-up offshore
drilling rigs, a jack-up barge, and a mobile offshore production
unit ("MOPU"), which includes a floating storage and offloading
unit. For more information, visit investors.adihgroup.com.
About Weatherford
Weatherford is one of the largest multinational oilfield service
companies providing innovative solutions, technology and services
to the oil and gas industry. The Company operates in over 90
countries and has a network of approximately 710 locations,
including manufacturing, service, research and development, and
training facilities and employs approximately 28,450 people.
Forward-looking statements
Certain statements contained in this announcement, including any
information as to the Group's strategy, plans or future financial
or operating performance constitute "forward looking statements".
These forward-looking statements can be identified by the use of
forward looking terminology, including the terms "believes",
"estimates", "anticipates", "projects", "expects", "intends",
"aims", "plans", "predicts", "may", "will", "seeks" or "should" or,
in each case, their negative or other variations or comparable
terminology, or by discussions of strategy, plans, objectives,
goals, future events or intentions. These forward-looking
statements include all matters that are not historical facts. They
appear in a number of places throughout this announcement and
include statements regarding the intentions, beliefs or current
expectations of the Directors of the Company concerning, amongst
other things, the Group's results of operations, financial
condition and performance, prospects, growth and strategies and the
industry in which the Group operates.
By their nature, forward looking statements address matters that
involve risks and uncertainties because they relate to events and
depend on circumstances that may or may not occur in the future.
Forward looking statements are not guarantees of future performance
and the Group's actual results of operations and financial
condition, and the development of the business sector in which the
Group operates, may differ materially from those suggested by
the
forward-looking statements contained in this announcement. In
addition, even if the Group's results of operations and financial
condition, and the development of the industry in which the Group
operates, are consistent with the forward- looking statements
contained in this announcement, those results or developments may
not be indicative of results or developments in subsequent
periods.
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END
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