Technicoil Corporation

Technicoil Corporation

March 10, 2010 17:01 ET

Technicoil Corporation Announces Settlement of Patent and Related Civil Litigation

CALGARY, ALBERTA--(Marketwire - March 10, 2010) -


Technicoil Corporation ("Technicoil" or the "Corporation") (TSX:TEC) today announced that the Corporation, together with Nabors Canada and Nabors Industries Ltd. (collectively "Nabors"), have entered into a definitive agreement to settle all outstanding patent and related civil litigation with Savanna Energy Services Corp. ("Savanna").

The key terms of the settlement involve the withdrawal of the challenges to Savanna's Canadian Patent No. 2,425,448 with respect to certain specific hybrid coiled tubing drilling technology (the "Technology") and acknowledgement that Savanna is the owner of the patent (and its US counterparts). In exchange, Technicoil and Nabors have received irrevocable, perpetual, worldwide, non-exclusive, royalty-free licenses to the Technology, subject to certain terms and conditions. The parties have executed full and final releases in respect of all outstanding patent and related civil litigation between them.

Under its license, Technicoil may incorporate the Technology in an additional seven rigs royalty free (thus potentially increasing its current fleet of such rigs from five to 12). As of January 1, 2014, it has the additional option of building up to a further three rigs for payment of a license fee.

Technicoil may sell its interest in the licensed rigs without limitation, charge or restriction as part of a sale of all of the assets of Technicoil. The license also permits Technicoil to sell individual rigs in its fleet of hybrid drilling rigs that incorporate the Technology, subject to a right of first refusal by Savanna. There is, however, no limitation on Technicoil offering its rigs as security as part of its usual banking arrangements.

Nabors' license imposes no restrictions on Nabors' ability, also royalty free, to expand its current fleet of hybrid drilling rigs that incorporate the Technology, to use and transfer such rigs within the Nabors group, or to sell them as part of a business unit. A disposal fee is triggered by sale of individual rigs to third parties beyond a certain threshold.

Technicoil Corporation is a Calgary-based oil and gas services company operating in the Western Canadian Sedimentary Basin. The Corporation's business is conducted through two segments: Well Servicing and Drilling.

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