SOURCE: Flotek Industries, Inc.

February 16, 2006 06:00 ET

Flotek Industries, Inc. Announces Artificial Lift Acquisition

HOUSTON, TX -- (MARKET WIRE) -- February 16, 2006 -- Flotek Industries, Inc. (AMEX: FTK) announced the signing of a letter of intent to purchase the assets of Total Well Solutions, LLC ("TWS") for approximately $3.2 million in cash. The deal is anticipated to close during the first quarter pending the completion of the final due diligence investigation.

TWS markets and services electric submersible pumps and downhole gas/water separators primarily to coal bed methane gas producers. We anticipate that in this acquisition Flotek will obtain TWS' proprietary rights to its patented gas separator. It is our expectation that the TWS patented gas separator combined with the Flotek Petrovalve will enable coal bed methane producers to realize substantially higher gas production rates and lower operating costs by capturing in-solution gas otherwise lost with water production and increasing pump performance and life.

"This acquisition will complement our existing patented artificial lift product, the Petrovalve, and will provide our customers a full spectrum of proprietary mechanical coal bed methane production enhancement solutions. The addition of electric submersible pumps and gas separators furthers our goal of increasing the scale and profitability of our artificial lift segment, providing further diversity within Flotek's business model," stated Jerry Dumas, Sr., Chairman and CEO.

Flotek's letter of intent with TWS is a non-binding statement of mutual intent. The closing of this transaction is subject to the execution of a definitive binding agreement, the completion of due diligence to the satisfaction of the company, and other contingencies.

Flotek will be presenting at the EnerCom Fourth Oilservice Conference in San Francisco at 11:45 a.m. February 16, 2006. All of the presentations (including audio) will be archived on the EnerCom website at http://www.enercominc.com/tosc06/webcast.html for 30 days.

Flotek manufactures and markets innovative specialty chemicals, downhole drilling and production equipment, and manages automated bulk material handling, loading and blending facilities. It serves major and independent companies in the domestic and international oilfield service industry. For additional information, please visit Flotek's web site at http://www.flotekind.com.

Statements made in this press release, including those relating to the positive direction of the Company, and increased revenue base, are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, which may cause results to differ materially from those set forth in these statements. Other factors identified in the Company's filings with the Securities and Exchange Commission could also affect the forward-looking statements contained in this press release.

Contact Information

  • CONTACT:
    Flotek Industries, Inc.
    Rosalie Melia
    Corporate Secretary
    713.849.9911