Pioneer Drilling Co. reported the purchase of a private oil services company active in the coiled tubing market in the United States.
Pioneer Drilling paid $110 million for Go-Coil, L.L.C., which is based in Louisiana. The company owns ten coiled tubing units, with seven units operating in the onshore area and three working offshore.
Pioneer Drilling funded the purchase of Go-Coil, L.L.C. using cash on hand and did not access the company’s credit line or capital markets. The company recently issued senior unsecured notes with a seven year term and received proceeds of $172.6 million.
Pioneer Drilling expects the purchase of Go-Coil, L.L.C. to generate between $26 million and $29 million of EBITDA in 2012, and said all ten coiled tubing units were placed into service over the last two years. Six of the units operate utilizing two inch diameter coil, and the other four use coil from 1.25 to 1.5 inches in diameter.
The acquired coiled tubing units are currently working in Louisiana, Texas, Oklahoma, and Pennsylvania. The company plans to integrate the units into its Production Services division.
For more information on the company, go to www.pioneerdrlg.com
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