1st Feb 2007 07:01
RPS Group PLC01 February 2007 RPS GROUP PLC("RPS" or "the Group") Acquisition of APA Petroleum Engineering Inc ("APA" or "the Company") Notification of Preliminary Results Date APA (www.apa-inc.com) RPS announces the further expansion of its Energy business with the acquisitionof APA, a leading petroleum engineering consultancy with headquarters inCalgary, Canada's oil and gas centre. APA was founded in 1982. It assists its clients maximise oil and gas production,minimise exploration and development risk and improve operational profitability.It has expertise in reservoir engineering, production and well engineering. Ithas a core team of over 30 professional staff and, in common with RPS's existingEnergy business, uses a range of external expert consultants as required toassist in the execution of projects. Financials In the year ended 31 July 2006, APA had revenues of Can $9.61 million (£4.15)million and pre tax profit, adjusted for non-recurring items, of Can $1.23million (£0.53 million). Net assets at 31 July 2006 were Can $2.16 million(£0.93 million). Consideration Maximum total consideration payable is Can $6.0 million (£2.59 million). Can$3.0 million (£1.29 million) was paid in cash at completion. A further Can $1.5million (£0.65 million) will be paid in cash on both the first and secondanniversaries of the transaction, provided certain operational conditions aremet. Integration APA will be integrated with the existing RPS Energy unit based in Calgary. BobPearson, the CEO and major shareholder of APA, and his senior management teamwill all be remaining with the business and have entered into new two yearservice agreements. APA's extensive experience in reservoir engineering andproduction studies worldwide and their knowledge of the technologies requiredfor the heavy oil and oil sands developments in Northern Canada will be valuableadditions to our existing North American business. 2006 Results RPS intends to announce Preliminary results for the year ended 31 December 2006on 6 March 2007. Alan Hearne, CEO of RPS commented: "The acquisition of APA is a positive step in the development of our Energybusiness in North America. Bob Pearson and his team are highly respected fortheir work in the oil sands developments of Northern Canada, Arctic gas, anddeep water projects in the Gulf of Mexico. We look forward to furtherdevelopment of the oil sands market and the introduction of RPS' environmentalexpertise into this marketplace. "2006 was an exceptionally good year for our energy business which has enabledthe Group as a whole to outperform expectations. In 2007 we expect to build uponthat with further organic growth and complementary acquisitions." 1 February 2007 RPS is an international consultancy providing advice upon the development ofnatural resources, land and property, the management of the environment and thehealth and safety of people. We trade in the UK, Ireland, the Netherlands,North America and Australia and undertake projects in many other parts of theworld. ENQUIRIESRPS Group plc Tel: 01235 863 206Dr Alan Hearne, Chief Executive College Hill Tel: 020 7457 2020Justine Warren This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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