Logan International Inc.

Logan International Inc.

March 01, 2012 16:00 ET

Logan International Inc. Closes the Purchase of Xtend Energy Services Inc.

CALGARY, ALBERTA--(Marketwire - March 1, 2012) - Logan International Inc. (TSX:LII) ("Logan") today announced that it has completed the previously announced purchase of all of the outstanding common shares of Xtend Energy Services Inc. ("Xtend"). In addition to a cash payment at closing of (CDN) $39 million, a portion of which was used to retire Xtend's indebtedness, additional payments may be made to the Xtend Shareholders, dependent upon Xtend's financial performance, for a maximum total purchase price of $53 million, subject to any working capital adjustment. The acquisition was funded from the proceeds of a newly placed $95 million senior credit facility.

Xtend, which is based in Alberta, Canada has developed a proprietary tool that enhances horizontal drilling effectiveness by introducing a variable frequency into the drill string that is designed to mitigate the effects of well-bore friction. Xtend introduced the tool into the Canadian market in 2004 and has experienced solid customer acceptance and growth. The Xtend Xciter tool has proven to be especially effective in the drilling of horizontal wells in the unconventional oil and gas plays in North America. Although the tools have been used mostly in Canada, Xtend has recently introduced its tools in the Eagle Ford Shale in South Texas during the first quarter of 2012 and anticipates strong growth in the U.S. market.

Mr. David Barr, Logan's Chief Executive Officer, stated "I believe the acquisition of Xtend adds to our reputation of being a leading worldwide supplier of downhole products and services and expands our presence into the drilling segment of the industry. The Xtend tools will enhance our position in the growing horizontal well industry. I further believe the Logan sales and distribution organization will hasten Xtend's entry into the U.S. market. In addition, we could not be more excited about the Xtend management team, led by Mr. Bob Russell, joining Logan"

Mr. Russell, Xtend's Chief Executive Officer, stated, "On behalf of the Xtend team, we are excited to be joining a premier company in the downhole tool industry and are totally committed to contributing to Logan's continued success.

Logan manufactures and sells a complete line of quality fishing and intervention products including retrieving, surface, stroking and remedial tools for a variety of well work-over, intervention, drilling and completion activities (Logan Oil Tools, Inc.); provides proprietary completion and production products including multi-zonal completion technology as well as conventional completion products and services (Logan Completion Systems Inc.); manufactures and sells high performance polycrystalline diamond compact cutters and bearings (Dennis Tool Company); manufactures and sells packers, bridge plugs and other completion products (Kline Oilfield Equipment, Inc.) and provides proprietary and patented products and services that are focused on production optimization in sand laden heavy oil wells (Scope Production Development Ltd.). The common shares of Logan are traded on the Toronto Stock Exchange under the ticker symbol "LII".

Forward-Looking Statements

This press release contains forward-looking statements, including, without limitation, expansions into the U.S. market, the anticipated benefits of the transaction and the additional payments that may be payable under the purchase agreement. 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 for the year ended December 31, 2010 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.

Contact Information

  • Logan International Inc.
    David Barr
    Chief Executive Officer
    403-903-6810 Calgary
    832-386-2500 Houston

    Logan International Inc.
    Larry Keister
    Chief Financial Officer
    403-903-6810 Calgary
    832-386-2534 Houston