HOUSTON, Texas, June 29 /PRNewswire-FirstCall/ -- Allis-Chalmers Energy Inc. (NYSE:ALY) today announced the sale of its capillary tubing units and related equipment to BJ Services Company for $16,250,000 in cash. Allis-Chalmers will retain the accounts receivables associated with the capillary tubing business.
Micki Hidayatallah, Allis-Chalmers' Chairman and Chief Executive Officer, stated, "We determined that the capillary tubing business did not fit our long term plan and believe there are other opportunities to redeploy our capital in a way that would be more beneficial for the future growth of Allis-Chalmers. Our Production Services segment, of which the capillary tubing assets represented a small portion, will continue to focus on providing a variety of production-related rental tools and equipment and services, including coil tubing, wire line services and land and offshore pumping services." About Allis-Chalmers Allis-Chalmers Energy Inc. is a Houston based multi-faceted oilfield services company. We provide services and equipment to oil and natural gas exploration and production companies, domestically in Texas, Louisiana, New Mexico, Colorado, Oklahoma, Mississippi, Utah, Wyoming, Arkansas, Alabama, West Virginia, offshore in the Gulf of Mexico, and internationally primarily in Argentina and Mexico. The Company provides rental services, international drilling, directional drilling, tubular services, underbalanced drilling, and production services. For more information, visit Allis-Chalmers' website at http://www.alchenergy.com/ or request future press releases via email at http://www.b2i.us/irpass.asp?BzID=1233&to=ea&s=0.
Forward-Looking Statements This press release contains forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Allis-Chalmers' business, financial condition, results of operations and prospects. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release.
Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, but are not limited to, demand for oil and natural gas drilling services in the areas and markets in which Allis-Chalmers operates, competition, obsolescence of products and services, the ability to obtain financing to support operations, environmental and other casualty risks, and the effect of government regulation. Further information about the risks and uncertainties that may affect Allis-Chalmers are set forth in our company's most recent filings on Form 10-K (including without limitation in the "Risk Factors" section) and in its other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Allis-Chalmers undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.
Contact: Jeffrey Freedman, VP IR Allis-Chalmers Energy
713-369-0550 Lisa Elliott, Sr. VP
DRG&E/ 713-529-6600
DATASOURCE: Allis-Chalmers Energy Inc.
CONTACT: Jeffrey Freedman, VP IR of Allis-Chalmers Energy Inc., +1-713-369-0550; or Lisa Elliott, Sr. VP of DRG&E, +1-713-529-6600, for Allis-Chalmers Energy Inc.
Web site: http://www.alchenergy.com/
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