Oilfield Services | PLS

March 23, 2017 • Volume 07, No. 03 OILFIELDSERVICES Serving the marketplace with news, analysis and business opportunities Wood Group lands Amec Foster Wheeler for $2.7 billion Trican buys Canadian peer Wood Group will acquire Amec Foster Wheeler in a $2.7 billion all-stock Canyon for $476 million offer, connecting two Scottish companies in the acquisition wave that has swept Trican Well Service will acquire the oilfield services industry. Amec Foster Wheeler shareholders will receive 0.75 Canyon Services Group in a C$637 new Wood Group shares for each share of Amec Foster Wheeler, million ($476 million) all-stock deal to giving them 44% of the create a premier Deal trades 0.75 of a Wood Group combined company, and Western Canadian share for one Amec Foster Wheeler share. valuing Wood Group at £5.64 for each fracker with 675,000 hydraulic horsepower. of 394,483,515 fully diluted shares. Wood Group is assuming net debt of $1.241 The combined company’s C$1.4 billion billion, making the total deal value $3.946 billion. The combined company said it market capitalization would be one of the has located cost synergies that will save £110 million ($134 million) a year following largest in Canadian oilfield services. one-off costs for the first months to realize the synergies. Both companies’ boards of directors have unanimously endorsed the deal, which is expected to result in £190 Stock swap represents 32% premium million in one-off costs. for Canyon shareholders. In 2014, UK upstream E&C Amec acquired US E&C and power equipment firm Under the agreement, Trican will Foster Wheeler for $3.2 billion. Continues On Pg 11 exchange 1.70 common shares of Trican Savanna ready to be acquired by Western for $586 million for each Canyon common share, a 32% The drama with Total Energy Services heats up, says it can block the deal premium over the closing price of Canyon on the Toronto Stock Exchange. Existing While Savanna Energy Services directors have accepted Western Energy holders of Trican shares will own 56% of Services’ $586.3 million merger offer, which would create the second-largest drilling the combined company. and well servicing contractor in Canada, Both boards of directors have Total Energy Services (TES) Western to assume $248 million in Savanna debt. unanimously approved the deal, which is not giving up on its hostile included the assumption of $40 million takeover bid for Savanna. TES said on March 21 that it has already locked of Canyon debt. Continues On Pg 15 up 43.5% of Savanna shares, enough to block the deal, leading to a showdown at an April shareholder meeting. Savanna’s board initially approved Western’s offer of 0.85 of a Western share for each DEALS FOR SALE Savanna share on March 9. After some criticism from shareholders and TES, Western then IRION CO., TX PROPERTY added $0.21 in cash for each Savanna share less than a week later, raising the purchase 2-Active HZ Wells. 2,900-Gross & Net Acres. price by 10% from $533.0 million to $586.3 million. The value of the Western-Savanna PERMIAN BASIN - WOLFCAMP deal includes the assumption of $248 million in Savanna debt. Continues On Pg 6 Wolfcamp B Bench PP Wolfcamp A, B, C & Ellenburger Potential 6 Sq. Miles Of Proprietary 3D Seismic ~220 Borr buys Transocean's jackup fleet for $1.35 billion 100% OPEARTED WI; 74-83.375% NRI BOED Borr Drilling, a relative newcomer created by former executives of Seadrill, Nov 2016 Net Production: ~220 BOED has signed an LOI to buy Transocean’s entire jackup fleet for $1.35 billion. The Nov 2016 Net Cash Flow: ~$157,000/Mn purchase of 10 existing jackups and five under construction will be partially funded AGENT WANTS OFFERS MAR 23, 2017 by an $800 million stock issue. PP 9201DV Currently, Borr has a fleet Borr Drilling increases its jackup fleet from two to 17. GLASSCOCK CO., TX ASSETS of only two rigs, which the 8-Producing Wells. ~1,455-Net Acres. Oslo, Norway, company bought in December from the Hercules Offshore bankruptcy MIDLAND BASIN PP liquidation. The drilling startup is backed by Tor Olav Trøim, a VP and director at 7 Vertical & 1 Horizontal Well. Seadrill in 2005-2014. Trøim is on Borr’s board of directors along with former Seadrill Wolfcamp A, Middle & Lower Spraberry Upper Spraberry, Jo Mill, Wolfcamp B & 475 President and CEO Fredrik Halvorsen. Cline Upside Potential BOED The sale price to Borr averages out to $90 million per rig for each of the 15 Avg 98% OPERATED WI AVAILABLE Transocean rigs. “Thatʼs half the construction cost, so itʼs a pretty attractive deal,” Net Production: 475 BOED Carnegie brokerage analyst Frederik Lunde told Reuters. Of the 10 jackups that have AGENT WANTS OFFERS APR 5, 2017 already been built, five were stacked, one is under a contract that expires this month, and PP 2751DV two are under contracts that expire in May, according to Transocean’s February fleet PLS tracks thousands of deals status reports. The remaining two jackups, both offshore Thailand and hired by Chevron, for sale www.plsx.com/listings are under contracts that expire in 2018. Continues On Pg 17 All Standard Disclaimers & Seller Rights Apply. OILFIELDSERVICES 2 March 23, 2017 A&D Schlumberger buys patent Hyduke acquires Western Manufacturing for $5.5MM for wastewater separator Just over a month after saying “now is the time” to execute its M&A strategy as Schlumberger will buy the oil prices recover, Hyduke Energy Services has acquired Western Manufacturing. intellectual property of Enviro Voraxial Western is based in Hythe, Alberta, and manufactures drilling equipment and related Technology, a developer of wastewater services in the Montney and Duvernay plays in northwest Alberta and northeast technology based British Columbia. Hyduke will also acquire the assets of Ledarco Industries, a in Fort Lauderdale, Western affiliate involved in the regional transportation of manufactured Florida. The deal includes the patents and components, raw materials trademarks related to the Voraxial Separator, and finished products. Closed $12MM equity financing in which EVT described as a cost-effective Feb. aimed at funding new M&A. Total consideration for the Western method to separate large volumes of solids shares and Ledarco assets was $5.5 million to be paid by a combination of cash, debt and liquids with different specific gravities assumption, and Hyduke’s issuance of 735,295 shares and up to an additional 1.05 without the need of a pressure drop. million shares to be settled within 180 days post-closing, which occurred on March 9. After the deal closes, EVTN will The deals are per Hyduke’s objective, first laid out in early 2014, to become a key retain a worldwide, royalty-free agreement supplier of oilfield services equipment to the industry. The company said it has been to manufacture and sell the Voraxial awaiting “the right market conditions” to expand its rig supply business, BW RIG, which Separator for all industries excluding the has returned to profitability in recent months. In the past year, Hyduke has been approved oil and gas market. EVTN will also retain by about 100 new customers that it expects to do business with in 2017 and beyond. certain rights to manufacture the Voraxial The acquisition of Western and Ledarco are congruent with Hyduke’s strategy Separator for Schlumberger for three years. to expand beyond the fabrication and support of drilling and well-servicing rigs and Financial details were not disclosed. related oilfield services equipment to become a diversified designer, fabricator and The agreement is expected to close in manufacturer of oilfield equipment required for the drilling, completion, production three months. EVTN was founded in and maintenance of upstream oil, natural gas and NGLs. 1964 as a defense and space contractor named Florida Precision Aerospace, changing its name to Enviro Voraxial North American Rotary Rig Count as of Mar. 17 Source: Baker Hughes Technology in 1994. Current Week Ago Month Ago Year Ago % Chg. Location 03/17/17 03/10/17 02/17/17 03/18/16 YOY ABOUT PLS US 789 768 751 476 66% Canada 276 315 331 69 300% OilfieldServices is published every three weeks by PLS Inc. US Breakout Info PLS OilfieldService report covers the oil Oil 631 617 597 387 63% & gas service sector including drilling, Gas 157 151 153 89 76% completions, operations and technology. In addition, OilfieldServices lists companies, Miscellaneous 1 0 1 0 - technologies, rigs, equipment and deals for Major Basins sale, coded alpha-numerically. Barnett 4 4 5 4 0% To obtain additional PLS product details, drill www.plsx.com/publications. DJ (Niobrara) 25 24 21 15 67% Eagle Ford 70 68 61 45 56% PLS Inc. One Riverway, Ste 2500 Fayetteville 1 1 1 - Houston, Texas 77056 Granite Wash 12 11 13 8 50% 713-650-1212 (Main) Haynesville 37 36 34 14 164% 713-658-1922 (Facsimile) Marcellus 42 41 42 31 35% To obtain additional listing info, contact us at 713-650-1212 or [email protected] Mississippian 6 3 3 7 -14% with the listing code. Only clients are able to Permian 308 309 303 152 103% receive additional information. To become a client call 713-650-1212. Utica 22 22 21 10 120% Williston 42 38 36 31 35% © Copyright 2017 by PLS, Inc. Any means of unauthorized reproduction is Woodford 59 57 56 39 51% prohibited by federal law and imposes fines Major Basins 628 614 596 356 76% up to $100,000 for violations. Find more on the oilfield sector at To learn more about PLS, call 713-650-1212 Volume 07, No.

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