Logan International Inc.
TSX : LII

Logan International Inc.

July 04, 2011 09:00 ET

Logan International Inc. Announces Disposition of Front-End Seismic Services Division

CALGARY, ALBERTA--(Marketwire - July 4, 2011) - Logan International Inc. (TSX:LII) ("Logan") today announced that it and certain subsidiaries has entered into a definitive asset purchase agreement to sell substantially all of the assets and operations of its front-end seismic services division, Destiny Resources Services ("Destiny"), to certain subsidiaries of Clean harbors, Inc. for total consideration of $38 million.

Mr. David Barr, Logan's Chief Executive Officer, stated "This transaction is consistent with our long term strategy; to be a leading worldwide supplier of downhole tools to the energy industry. The proceeds from the sale, which will retire substantiality all of Logan's debt, will provide us with the financial strength and liquidity to pursue our aggressive growth strategy. As part of our plan, we will explore external acquisition opportunities as well as grow our existing businesses. The opportunity to realize Destiny's full value and to invest the proceeds in our core business was the key factor in selling this division."

Mr. Barr added, "During our ownership of Destiny, we enhanced Destiny's value by streamlining operations, by expanding our operation into the Marcellus Shale and by reducing overhead. We do not expect this transaction to have a material impact on our earnings through the remainder of 2011."

The transaction, which is subject to customary conditions, the successful completion of due diligence reviews and certain third party consents, is expected to close in July.

Peters & Co. Limited acted as financial advisor to Logan with respect to the Transaction.

Logan manufactures and sells a complete line of quality fishing and intervention tools including retrieving tools, surface tools, stroking tools and remedial tools (Logan Oil Tools, Inc.) for a variety of well work-over, intervention, drilling and completion activities; provides proprietary fracturing products including multi-zonal fracturing completion technology (Logan Completion Systems Inc.); and sells high performance polycrystalline diamond compact ("PDC") cutters and bearings (Dennis Tool Company).

Forward-Looking Statements

This press release contains forward-looking statements, including, without limitation, statements relating to the completion and closing and the anticipated benefits including the repayment of debt relating to this transaction. These statements relate to future events or future performance of Logan. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such statements reflect Logan's current views with respect to certain events and are subject to certain risks, uncertainties and assumptions. Although Logan believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because we can give no assurance that they will prove to be correct. Many factors could cause Logan's actual results, performance, or achievements to materially differ from those described in this press release. Readers are referred to Logan's Annual Information Form filed on www.sedar.com which identifies significant risk factors which could cause actual results to differ from those contained in the forward-looking statements. Should one or more risks or uncertainties materialize or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. Logan does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein in any jurisdiction.

For more information about Logan International Inc. please visit our website at www.loganinternationalinc.com.

Contact Information

  • Logan International Inc.
    David Barr
    Chief Executive Officer
    403-237-6437 Calgary
    281-617-5300 Houston

    Logan International Inc.
    Larry Keister
    Chief Financial Officer
    403-237-6437 Calgary
    832-386-2534 Houston