ALDERSYDE, Alta. — Mullen Transportation has acquired Cora Lynn Drilling Co., an Alberta company specializing in drilling and recovery of formation core samples in the oilfields.
The company’s formation core sample recovery process is used by oil and gas companies to identify the structure of potential hydrocarbon formations. The company operates 28 truck-mounted drill units.
“The oil sands in northern Alberta contain some of the largest oil deposits in the world, attracting billions of investment dollars. The acquisition of Cora Lynn is an excellent fit in the Mullen organization," said Murray Mullen, president and CEO of Mullen Transportation.
He added the acquisition will help strengthen Mullen’s position as a top provider of oilfield services.
“Based upon past performance, we expect Cora Lynn to increase Mullen’s consolidated revenues in 2004 by approximately $45 million. Our analysis indicates that Cora Lynn generates operating margins consistent with other drilling companies participating in Western Canada and as such we expect this transaction to be accretive to earnings," said Mullen.
Don Murray, founder of Cora Lynn will remain on as president and will continue to oversee Cora Lynn’s operations. The transaction is expected to wrap up by month-end.
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