Norsk Hydro acquires Spinnaker Exploration for $2.45 billion, boosts its presence in GoM

Company officials gather to sign the merger agreement between Norsk Hydro and Spinnaker Exploration. From left: Roger L. Jarvis, Spinnaker’s chairman and CEO; Tore Torvund, executive vice president, Norsk Hydro; and John O. Ottestad, CFO of the Norwegian firm. Photo courtesy Norsk Hydro.

This transaction will significantly boost Hydro’s presence and growth potential in the US Gulf of Mexico. “We believe that the deepwater potential in the Gulf of Mexico is considerable,” said Eivind Reiten, Hydro president and CEO. Following completion of the acquisition, Hydro expects annual international production growth in 2005-2008 of around 40 percent. The transaction is expected to be earnings and cashflow accretive to Hydro.

In addition to the $65.50 per share in cash for all outstanding common shares (approximately $2.45 billion), Hydro will assume approximately $110 million in net interest-bearing debt. The company plans to fund the acquisition with cash on hand. It plans to hedge near-term oil and gas production from Spinnaker to secure short-term cashflow from producing assets.

News of the merger did not affect the corporate credit ratings and outlook on Norsk Hydro ASA. According to a Standard & Poor’s analyst Karl Nietvelt, “The negative outlook on Norsk Hydro reflects our concerns about the company’s ability to replace oil and gas reserves competitively, halt the decline in its reserve life over recent years, and build a portfolio of international upstream operations.”

Houston-based Spinnaker is an independent energy company engaged in the exploration, development, and production of oil and gas in the US Gulf of Mexico and West Africa.

Norwegian-based Hydro is an international oil and gas group, currently producing around 575,000 boe/d. The company employs about 35,000 people in 40 countries.

New multi-billion energy trust created by Acclaim and StarPoint merger

Acclaim Energy Trust and StarPoint Energy Trust have entered into an agreement that will merge the two companies to form a new energy trust. The new trust will be one of the largest conventional oil and gas trusts in North America, with an enterprise value of more than CAN$5 billion. Upon completion of the transaction, the trust will operate under a new name to be released at a later date.

The transaction is subject to regulatory approval and unitholder approval by at least two-thirds of each of the Acclaim and StarPoint unitholders. These meetings are expected to be held in December, and the transaction is expected to close in January.

Following the closing, the parties will apply to inter-list the trust units on the New York Stock Exchange. Both companies believe that a listing on the NYSE would result in improved liquidity and greater access to US capital markets.

Following the merger, the new trust will be managed by Acclaim’s existing management team with J. Paul Charron acting as president and CEO.

Acclaim Energy Trust is a Calgary-based royalty trust engaged in the development and acquisition of oil and gas reserves in Western Canada. StarPoint Energy Trust is a Calgary-based conventional oil and gas income trust.

Gazprom to buy Sibneft for $12 billion in largest Russian takeover in history

Russia’s state-controlled energy giant, Gazprom, says it intends to buy controlling interest in Sibneft, another Russian energy company, by the end of 2005, according to Gazprom’s top executive. This largest takeover deal in Russian history would be financed by a $12 billion loan package put together by US and European banks.

Alexander Medvedev, deputy chairman of Gazprom, told the press that negotiations are underway to buy a 72-percent controlling interest in Sibneft, and he hopes to complete the deal by the end of the year.

The takeover would further consolidate Russian energy assets in the hands of the government. Roman Abramo-vitch, considered to be the wealthiest man in Russia, currently owns 72 percent of Sibneft.

Sibneft would become the second oil company to move back under Russian state control. Last year, Rosneft, the state oil company, acquired controlling interest in the Yukos oil company.

Gazprom’s planned acquisition of Sibneft is part of the gas monopoly’s effort to transform itself into a global energy company. A group of western banks that includes Morgan Stanley, Goldman Sachs, Dresdner Kleinwort Wasserstein, ABN Amro, Credit Suisse First Boston, and Citigroup has been putting together the $12 billion financing package - the largest loan ever extended to a Russian company.

This would mark the second time Abramovich has sold Sibneft in two years. In 2003, he sold Sibneft to Yukos, receiving $3 billion in cash as part of the deal. That deal unwound after Mikhail Khodorkovsky, a former owner of Yukos, was jailed and prosecuted by the government in Moscow. However, the $3 billion was never paid back and Yukos still controls 20 percent of Sibneft.

The Exploration Company will sell Maverick basin properties to EnCana

San Antonio-based The Exploration Company (TXCO) has entered into an agreement with EnCana Oil & Gas (USA) Inc. to sell selected interests in TXCO’s 670,000-acre Maverick basin block in southwest Texas for $80 million. The purchaser will acquire interests in about 300,000 gross acres across the southern portion of TXCO’s acreage. TXCO will retain an interest in two intervals - the Glen Rose formation under the entire block and the San Miguel formation in the Pena Creek field only.

EnCana will acquire a 50-percent interest in about 220,000 gross acres across the northern portion of TXCO’s Maverick basin acreage as well. After a specified time, TXCO and EnCana will undertake to partition the lands with each retaining 100 percent interest in their respective portions.

TXCO will continue to hold interests in about 670,000 gross acres and around 470,000 net acres in the Maverick basin after the closing of the transaction.

Closing is subject to the purchaser’s satisfactory completion of due diligence and title review; corporate approval by both parties; the purchaser’s acquisition of a third party’s joint interest in the properties; and other contingencies.

Roxar signs $12 million contract to supply multiphase flow meters offshore Nigeria; company also launches new subsea system

Roxar has been chosen by Cameron, a division of Cooper Cameron Corp., to supply Subsea Multiphase Flow Meters with ROV retrievable electronics to the deepwater Akpo field offshore Nigeria. Cooper Cameron is an international manufacturer of oil and gas pressure control equipment. The company also supplies subsea EPC projects to the offshore oil and gas industry.

The final contract is valued at around $12 million and is believed to be the world’s largest single order in value for multiphase meters. This contract comes on the heels of a contract Roxar won in May to supply the multiphase flow meters to a Middle Eastern client and another in January to supply its meters to the deepwater Rosa field off the Angolan coast.

Roxar’s subsea meters are designed to continuously measure the flow rates of oil, water, and gas in the well stream without the need for separation. The information is used to determine the optimal production capacity of each well over the lifetime of the field, thereby avoiding the risk of overproduction.

Closely integrated with Roxar’s multiphase flow meters, is the company’s new AD3000 subsea system. This new compact sand detector is now available to oil and gas firms as well as engineering, procurement, and construction companies across the world. It uses acoustic technology to provide real-time quantitative monitoring of sand in oil, gas, or multiphase pipeline flows.

Stavanger, Norway-based Roxar is an international technology solutions provider to the upstream oil and gas industry. The company employs close to 500 staff across Europe, the Americas, Africa, CIS, Asia Pacific, and the Middle East.

Wood Group contracted by Sevan Marine to operate and maintain SSP Piranema

A subsidiary of international energy services company John Wood Group PLC has been contracted by Sevan Marine to provide operations and maintenance (O&M) for the SSP Piranema floating, production, storage, and offloading (FPSO) vessel, which will be operated for Petróleo Brasileiro SA - Petrobras on the Piranema field, offshore northeast Brazil. The extendable contract is set for five years and about $7 million per year.

Artist’s rendition of the SSP Piranema. The vessel is expected to store 300,000 bbl and receive up to 21 risers.

Wood Group will have complete responsibility for O&M management and execution, including onshore technical, logistical, and supply chain support, and for the operational efficiency and performance of the SSP Piranema. This will be the first implementation worldwide of Sevan Marine’s Sevan Stabilized Platform (SSP) cylindrical mono-hull design. The SSP Piranema is designed to accommodate 30,000 b/d process plant capacity, a gas injection plant with compression capacity of 3.6 million cubic meters per day, and oil storage capacity of 300,000 bbl, and will be prepared to receive up to 21 risers.

Wood Group is an international energy services company with $2.3 billion in sales, employing more than 14,000 people worldwide and operating in 36 countries. Sevan Marine ASA is an offshore technology company that specializes in the market for floating production and storage of oil and gas.

Roxar signs $12 million contract to supply multiphase flow meters offshore Nigeria; company also launches new subsea system

Quorum Business Solutions Inc., a provider of software solutions for the oil and gas industry, has launched its next-generation upstream operations and accounting software suite. The Quorum Upstream Software Suite incorporates process and data management features that address the new wave of accounting and control issues that have impacted the E&P industry in recent years.

Built on Microsoft’s .NET technology, the product includes land and lease management, division order, volume management, production and revenue accounting, gas marketing, cost accounting, core financials, and lease operating statements. The architectural design allows companies to deploy the entire integrated suite or only selected modules. Quorum has 15 clients actively using various modules of its Upstream Software Suite.

The functionality within each module was designed based on the requirements and best practices from a variety of large and small Quorum clients. The extent of automation and workflow throughout the suite enables oil and gas companies to more efficiently manage growth without comparable increases in operational and administrative costs. All modules provide extensive security, workflow configurability, and process controls necessary with the increased demands of the Sarbanes-Oxley era.

Quorum Business Solutions is a product-centered consulting company that develops, implements, and supports a suite of business software solutions for the energy industry. Founded in 1998, Quorum now has more than 180 staff operating out of offices in Houston, Dallas, and Calgary.

ENSCO to provide ultra-deepwater semisubmersible rig to consortium

ENSCO International Inc., along with a consortium of three independent oil companies, entered into a drilling contract to provide a new ultra-deepwater semisubmersible drilling rig, to be named ENSCO 8500. The drilling contract with Anadarko Petroleum Corp., Dominion Exploration & Production Inc., and Kerr-McGee Oil & Gas Corp. is for a firm, four-year primary term, plus four one-year extension options.

The aggregate revenue expected to be paid under the contract during the four-year primary term is about $385 million, which includes about $20 million payable upon delivery of the rig. Under the terms of the agreement, ENSCO will be reimbursed for mobilization and other start-up costs, and day rates will be adjusted for future variances in operating cost.

The company has entered into an agreement with Keppel FELS Ltd. in Singapore to construct ENSCO 8500, with delivery currently anticipated by the second quarter of 2008. The total construction cost of the rig is currently expected to be about $312 million.

ENSCO 8500 will be an enhanced version of the company’s first deepwater semisubmersible rig, ENSCO 7500. ENSCO 8500 will be able to drill in up to 8,500 feet of water, and can be upgraded to 10,000 feet water-depth capability if required.

Enhancements include a two-million pound quad derrick, offline pipe handling capability, increased drilling capacity, greater variable deck load, and improved automatic station keeping ability.

ENSCO, headquartered in Dallas, owns and operates a fleet of offshore drilling rigs servicing the global petroleum industry.

Toreador prices $75 million of convertible senior notes

Toreador Resources Corp. has priced $75 million aggregate principal amount of convertible senior notes due Oct. 1, 2025, to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended.

The company also granted the initial purchasers the option to purchase an additional $11.25 million aggregate principal amount of notes to cover over-allotments. The notes bear interest at a rate of 5 percent per year and can be converted into common stock at an initial conversion rate of 23.3596 shares of common stock per $1,000 principal amount of notes, subject to adjustment (equivalent to a conversion price of approximately $42.81 per share).

Net proceeds from the placement will be used for general corporate purposes, including funding a portion of the company’s 2005 and 2006 exploration and development activities. The notes will be senior unsecured obligations of the company and will rank equally with all existing and future senior unsecured indebtedness. The notes will not be guaranteed by any subsidiaries of the company.

Toreador Resources is an independent international energy company engaged in the acquisition, development, exploration, and production of natural gas, crude oil, and other income-producing minerals. The company holds interests in developed and undeveloped oil and gas properties in France, Turkey, Romania, and Hungary. In the US, Toreador primarily owns working interests in five states.

Rival Technologies acquires TRU Oiltech, a heavy oil upgrading technology

Rival Technologies Inc. has reached an agreement to acquire a heavy oil upgrading technology called TRU Oiltech. Rival has obtained a majority interest, and will fund research and tests aimed at completing a patent and commercially viable process later this year.

TRU Oiltech is a mild thermal reagent process, added to heavy crude oil and oil sands bitumen in order to improve their viscosity for transfer in pipeline systems. Rival expects TRU Oiltech to provide substantial per barrel cost savings over existing methods.

Tar sands have a renewed interest with many major oil processors across North America. According to an Alberta Energy Board report, annual bitumen production will more than double from the current production levels in the next 10 years. The oil and gas industry recently reported renewed interest in the expansion of oil sand production and related technologies.

“Increased oil consumption along with higher energy prices has created opportunity for new technologies. TRU Oiltech has the potential to add significantly to Rival shareholder value. We have an aggressive research and development schedule planned for this technology in the next three months,” said Robin J. Harvey, president of Rival Technologies.

TBS-NOPEC to acquire Aceca Ltd., subsidiary signs deal with Chesapeake

TGS-NOPEC Geophysical Co. ASA and privately-held Aceca Ltd. have signed a letter of intent whereby TGS will acquire all shares of Aceca for $10 million in cash plus $2.5 million in the form of held TGS shares. Following due diligence and approval from the TGS board of directors, the transaction is expected to close in November.

Hank Hamilton, CEO of TGS, said, “Aceca’s products, technology, and expertise fit extremely well with the TGS vision to add value to our rapidly expanding library of seismic and well log data. Aceca’s experienced G&G staff will also help TGS in its evaluation of new investment opportunities worldwide.”

Phil Slater, managing director and a primary shareholder of Aceca, said “...it is clear that the integration of the Aceca Geologica products and services with those of TGS achieves our corporate objective to reach other data rich international market places.”

London-based Aceca has an office in Stavanger, Norway, and employs a staff of 45, including 40 degreed scientists. Aceca’s primary business is creating and selling multi-client interpretation studies in northern Europe utilizing well log, seismic, and other forms of geoscientific data. Aceca also deals in subsurface interpretation consulting. Aceca offers geological and geophysical interpretation consulting services to oil companies.

In related news, A2D Technologies, a wholly-owned subsidiary of TGS-NOPEC, has secured a comprehensive well log data agreement with Chesapeake Energy Corp. Terms of the five-year agreement include a subscription for unlimited access to A2D’s industry-standard depth-calibrated smartRASTER® well log database. Additionally, Chesapeake will partner with A2D to further expand the A2D commercial digital LAS log library.

“Our extended agreement with A2D is an important part of Chesapeake’s digital data strategy to increase exploration success,” commented Mark Lester, senior vice president of exploration for Chesapeake. “Having unlimited, readily-available access to well log data for our geoscientists is essential to staying competitive in today’s market.”

“This agreement expands a long-standing and positive relationship between our two companies,” stated Rod Starr, executive vice president sales and marketing for A2D. “Chesapeake joins a steadily growing list of leading energy companies who take full advantage of online access to A2D’s complete well log database in the US.”

A2D Technologies, a wholly-owned subsidiary of TGS-NOPEC, offers an online database, immediate delivery, conversion services, data management services, and worldwide well log data sourcing.

TGS-NOPEC Geophysical Co. is a global provider of multi-client geoscientific data, associated products, and services to the oil and gas industry. TGS specializes creating non-exclusive seismic surveys worldwide. The company also provides advanced depth imaging solutions and software through its TGS Imaging division.

Shell selects JGC/KBR to manage GTL project, awards team contract for Pearl GTL complex in Qatar

KBR, the engineering, construction, and services subsidiary of Halliburton, and JGC Corp. have been chosen by Qatar Shell GTL Ltd., a Royal Dutch Shell PLC subsidiary, to manage the Pearl Gas to Liquids (GTL) project in Ras Laffan, Qatar. In addition to the development of offshore upstream gas production facilities, Shell’s Pearl GTL project comprises the development of an onshore GTL plant that will produce 140,000 b/d of GTL products and around 100,000 boe/d of natural gas liquids.

“GTL is at the forefront of gas processing technology and is key to satisfying the world’s energy needs in the future,” said Andy Lane, executive vice president and COO of Halliburton.

This latest contract comes on the heels of the successful completion of the basis of design/basis design package and the subsequent front-end engineering design provided by the joint venture. The KBR/JGC team’s role will include project management and strut-up support of the overall onshore Pearl GTL complex, along with engineering, procurement, and construction management of the GTL syntheses, utilities and infrastructure sections of the complex. When complete, this facility will be the largest GTL plant in the world.

“JGC built Shell’s first commercial GTL plant in Bintulu, Malaysia, in 1993 and later performed the debottlenecking work of the plant,” said Kazou Yamaga, executive vice president and chief marketing officer of JGC. “Since that time, JGC has cooperated extensively with Shell on its development of GTL technologies.”

In August, JGC and KBR renewed their natural gas alliance that began in 1999. The alliance is composed of three global operating hubs: JGC in Yokohama, KBR in Houston, and MWKL in London, covering the world’s largest GTL/LNG market.

Established in 1928, JGC Corp. is an international engineering and construction company based in Yokohama, Japan, having multiple operating centers and executing large scale projects worldwide.

KBR is a global engineering, construction, technology, and services company. KBR employs more than 60,000 people in 43 countries around the world. KBR is a wholly-owned subsidiary of Houston-based Halliburton.

ExxonMobil signs five-year deal to supply Caterpillar factories and dealers worldwide

ExxonMobil and Caterpillar agreed on a five-year deal in which ExxonMobil will be the exclusive supplier to Caterpillar worldwide for 30 Cat lubricants for engines, transmissions, hydraulics, and final drives.

“Caterpillar and ExxonMobil bring together world-class product research and have created lubricant technologies that directly enhance the life of Cat equipment,” said Bill Springer, Caterpillar vice president. “These oils have been designed to work as a system with the machine and engine to provide the highest performance, while lowering the operating costs for Caterpillar customers.”

“Our global relationship with Caterpillar includes a dedicated team to support the Caterpillar program, which includes providing technical and marketing training to all Cat dealers and facilities - worldwide,” said Jim Hennessy, vice president of sales for ExxonMobil’s lubricants and specialties.

Caterpillar manufactures construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Sales and revenues in 2004 were approximately $30.25 billion.

NYMEX Europe pleased with volume on first day of open outcry trading

By the close of trading, the NYMEX Europe Ltd. Brent crude oil futures contract reached an estimated volume of 16,591 contracts on its first day of open outcry trading in London.

While the 2,982 contract volume reached Tuesday, Oct. 12 was significantly less than opening day, the people at NYMEX Europe remain optimistic and say it will take time for the volumes to even out. Roy Leighton, chairman of NYMEX Europe, said, “We are gratified by the tremendous number of traders that participated in our first day of open outcry trading in London. We look forward to watching the volume and open interest steadily grow as many firms who have applied for membership will begin trading in the coming days and weeks.”

NYMEX Europe is the European subsidiary of NYMEX Holdings, Inc. NYMEX Europe offers open outcry futures trading in a financially settled Brent crude oil futures contract and a physically delivered Northwest Europe gasoil futures contract.

NYMEX Holdings is the parent company of both NYMEX Europe and the New York Mercantile Exchange Inc. NYMEX Europe outsources certain functions from the New York Mercantile Exchange, including clearing, information technology, and compliance and risk management.

NYMEX Holdings established an open outcry trading floor in London as the starting point of the globalization strategy of NYMEX Holdings and its subsidiaries. The establishment of an open outcry trading floor in Europe is part of a worldwide plan to create a market for energy transactions across market centers in Europe, North America, and the Middle East.

SeaDrill confirms contract for third deepwater semisubmersible rig

SeaDrill’s board has signed a contract with Daewoo Shipbuilding in Korea for the construction of an ultra-deepwater harsh environment semisubmersible drilling rig of design GVA 7500-N. The semisubmersible will be delivered to the owner in February 2008.

The contract price for the unit is $496.5 million and is based on a full turnkey delivery, including an extensive testing program, 7,500 feet of riser, a 15k BOP, and a full mooring system. The rig will have a soft payment schedule with 3 x 10 percent payment under the construction period and 70 percent by delivery.

SeaDrill has also received two optional contracts for the delivery of similar units in June 2008 and first half of 2009. These options are declarable in two and eight months time and have a fixed contract price of $486 million.

Established in May 2005, SeaDrill has gathered an offshore fleet of 12 units, including three ultra-deepwater semisubmersibles. In addition, the company has received fixed price options for one jack-up and three semisubmer-sibles declarable during the next year.

The board is currently working under the assumption that the company will exercise these four optional units. They are doing this in a way that the return on the existing equity is optimized. This is achieved by reducing the need for additional equity by efficient debt financing, using cash flow from existing units, and a good employment basis for the existing fleet.

SeaDrill will, based on an exercise of the three optional semisubmersibles, have a fleet of six ultra-deep semisubmersibles plus be the owner of 25 percent of Ocean Rig, which owns another two ultra-deep water units.

Far East Energy to deploy $10.9 million in equity financing for China operations

Houston-based Far East Energy has completed a private placement of shares of its common stock for total gross proceeds of $10.9 million to be used to finance a portion of its operations in China, including planned horizontal drilling for coalbed methane, and for working capital purposes. The company priced the sale of the common stock on Sept. 19 at 90 cents per share.

Far East Energy will issue a total of 12,111,111 shares in the offering. The company will pay commissions of $763,000 and will grant placement agent warrants to purchase 150,000 shares of common stock in connection with this transaction.

Far East Energy has offices in Houston, Beijing, Kunming, and Taiyuan City. The company is focused on the acquisition of, and exploration for, coalbed methane through its agreements with ConocoPhillips and China United Coalbed Methane Company (CUCBM).

Petrobras makes GoM gas discovery, plans accelerated development program

In its first operated-well in the Gulf of Mexico, Petrobras has made a natural gas discovery. The well is located in Garden Banks 244 and is an extension of the Cottonwood discovery.

The well was drilled in 640 meters of water by the Noble Lorris Bouzigard. With the confirmation of the extension of this gas field, Petrobras America intends to implement an accelerated development program for these reserves, aiming to begin production by the start of 2007. Petrobras has an 80 percent participation in this discovery and is the block operator. Mariner Energy Inc. is the other partner, holding the remaining 20 percent.

The Garden Banks site is one of the four focus areas selected by Petrobras with precedence for its exploratory activities in the American sector of the Gulf of Mexico. The other areas of interest are the ultra-deep waters of the Gulf, ultra-deep gas objectives in shallow waters, and the west portion of the region.

India's Bharat Petroleum deploys Triple Point Technology¿s softw

Bharat Petroleum Corp. Ltd. (BPCL) has completed deployment of Triple Point Technology’s next-generation software solution for integrated trading, risk management, and physical operations.

The software, which includes Triple Point’s Commodity XL for Oil and PhysOps XL software products, is now managing BPCL’s physical and financial trading and movement of its crude oil and refined products. By replacing manual spreadsheet-base systems, the solution automates and streamlines BPCL’s deal capture, operations planning, settlement, billing, and other critical business processes.

By implementing Triple Point’s solution, BPCL becomes the first government-owned oil company in India to achieve a fully automated trading and risk management system. The solution also improves the company’s organizational accounting and controls, enabling full compliance with international and domestic regulations.

Triple Point will provide BPCL with localized support through the company’s Pune, India-based subsidiary - Triple Point India. Triple Point India employs more than 100 professionals dedicated to developing and supporting the company’s advanced cross-industry software platforms in Asian and other global commodities markets.

BPCL is India’s second-largest petroleum company. It processes petroleum products and sells engine oils and gasolines for autos, liquefied petroleum gas, and kerosene for the domestic sector, and feedstock and fuels for the petrochemical industry.

Westport, Conn.-based Triple Point Technology provides trading and risk management solutions for commodities including power, oil, gas, coal, metals, agricultural products, and freight.

Cano Petroleum secures additional funding

Cano Petroleum Inc. has received written commitments for the private placement of 2,100,000 shares of its common stock at $4.14 per share from certain investment advisory clients of a large Boston-based institutional investment manager. The price was above the closing price for Cano shares on Sept. 16 on the American Stock Exchange. The gross proceeds will be $8,694,000, and the net proceeds of the issuance will be used for general corporate purposes, working capital, and acquisitions.

The common stock offered in the private placement has not been registered under the Securities Act or state securities laws and may not be offered or sold in the US absent registration with the Securities and Exchange Commission or an applicable exemption from the registration requirements.

Cano Petroleum is an independent, Texas-based, energy producer with properties in the mid-continent region of the US. The company’s primary focus is on increasing domestic production from proven fields using enhanced recovery methods.

FMC Technologies sells MODEC shares

FMC Technologies has sold 2.6 million common shares of MODEC Inc., a Tokyo-based company. The cash proceeds from the sale will be approximately $74 million. An after-tax gain of about 22 cents per diluted share will be recognized in the third quarter of 2005. FMC Technologies acquired the 2.6 million shares in November of 2004 as a result of a previously announced transaction with MODEC, in which it exercised its right to acquire common shares of MODEC, under a previous agreement.

“For more than 20 years our FMC SOFEC subsidiary has had a supplier relationship with MODEC Inc. This strong relationship for the supply of mooring and turret systems will continue,” said Joseph H. Netherland, chairman, president, and CEO.

Stallion acquires assets of GL Trucking & Rental

Stallion, a drilling support services provider, has acquired the assets of GL Trucking & Rental Inc., a provider of integrated drilling support services for the Williston basin and surrounding areas. Assets include more than 100 rig housing units, significant rig hauling capacity, loaders, and equipment setting cranes.

The North Dakota acquisition extends Stallion’s current geographic footprint in the Rocky Mountains where Stallion operates from Riverton, Wyo., and serves Wyoming, Colorado, and Utah. The company recently opened a new service location in Rifle, Colo., to strengthen its service capability in the Piceance basin.

Stallion now provides services in the Gulf Coast, South Texas, ArkLaTex, Fort Worth basin, Permian basin, Anadarko basin of Western Oklahoma, Rocky Mountains, and Williston basin.

Stallion has about 325 employees in 17 locations and more than 1,100 land-based rig housing units, a significant fleet of surface rental equipment, and significant solids control capability including closed-loop systems.

Flotek signs exclusive agreement with Don-Nan Pump and Suppl

Petrovalve Inc., a subsidiary of Flotek Industries Inc., has signed an agreement with Don-Nan Pump & Supply located in Midland, Tex. Don-Nan will have the exclusive right to install the patented Petrovalve Plus and Gas Breaker valve products in their rod pumps. Don-Nan manufactures and markets quality downhole sucker rod pumps to the oil and gas production industry.

The patented guided design of the Petrovalve allows the pump chamber to completely fill on every up-stroke of the pumping unit, regardless of pump position.

Don-Nan Pump & Supply Co. was founded by Vernon Carruth in 1962 and currently operates in nine locations within Texas, Colorado, Wyoming, and New Mexico. Current operations include manufacturing and machining capability (Midland) along with sucker rod pump repair and sales.

Flotek is a publicly traded company involved in the manufacturing and marketing of specialty chemicals, downhole drilling and production equipment, and management of automated bulk material handling, loading and blending facilities. It serves major and independent companies in the domestic and international oilfield service industry.