ALDERSYDE, Alta. – Mullen Group has completed the acquisition of Schmidt Drilling – a deal that includes five truck-mounted drilling units as well as a fleet of support trucks and trailers.
The deal involved about $27.5 million which was satisfied through debt assumption, the issuance of trust units and cash. Schmidt’s business is focused on serving the oilsands’ core drilling market. It also provides conventional oil and gas drilling and coalbed methane drilling services, Mullen reports.
“Based upon past performance and existing drilling commitments, we expect Schmidt Drilling to increase Mullen’s consolidated revenues in 2006 by approximately $20 million. Our analysis indicates that Schmidt Drilling should generate operating margins consistent with other drilling contractors operating in Western Canada,” said Stephen H. Lockwood, president and co-chief executive officer.
“Schmidt Drilling’s operations are leveraged to the oilsands which has been a strategic focus of Mullen for a number of years. This acquisition evidences our continued commitment to growth through the acquisition of profitable and well-run companies leveraged to the energy industry.”
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