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26 Mar 2019 | 10:19

ADES completes transaction with Weatherford, acquiring final four rigs for $32m

ADES International Holding completed the final transaction with Weatherford International, acquiring the final four rigs for a total of $32m. The acquisition cost was US$ 20m for the two onshore Algerian rigs and an additional US$ 12m for the Southern Iraq rigs, for a total consideration of US$ 32 million for the four rigs. The transaction was the final segment of the previously signed definitive agreement with a subsidiary of Weatherford to acquire thirty-one onshore drilling rigs for a total consideration of US$ 287.5m, including twelve rigs in Kuwait, eleven in Saudi Arabia, six in Algeria and two rigs delivered outside of Southern Iraq for relocation to Saudi Arabia.

'With the Weatherford acquisition now complete, we have effectively tripled our fleet size and more than doubled our number of operating rigs across an expanded geographical footprint. Our strategy in 2019 will focus on organic growth and on capitalising on the increased tendering capacity afforded by the eleven uncontracted rigs acquired through the transaction,' said said Dr. Mohamed Farouk, Chief Executive of ADES.

'We expect to extract synergies from our larger fleet and are pushing forward an asset integration program to manage the rapid operational growth.'

At 10:19am: (LON:ADES) ADES International Holding Ltd share price was +0.01p at 14.18p

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