12th Dec 2005 07:01
Wood Group (John) PLC12 December 2005 WELLDYNAMICS ACQUIRES WOOD GROUP'S PRODUCTION TECHNOLOGY (PROTECH) BUSINESS Oil and gas intelligent completion specialist WellDynamics has acquired theProduction Technology (ProTech) business of John Wood Group PLC ("Wood Group")for an initial consideration of $24.5m plus an additional working capitalpayment. The acquisition will combine WellDynamics' premier intelligent well systems withProTech's permanent downhole, subsea and surface monitoring products creating abroad portfolio of advanced well technology solutions. Derek Mathieson, director of Technology for WellDynamics, said, "BothWellDynamics and ProTech have invested significantly in building theirrespective product portfolios and in technologies to improve the reliability ofintelligent well products. Our product lines and reliability engineeringcapabilities are complementary and this acquisition will combine the expertiseof WellDynamics and ProTech to deliver continuous improvement in world classSmartWell solutions." "Our ROC(TM) product range is now widely recognized as one of the best premiummonitoring systems in the business," explained David Blacklaw, General Managerof ProTech, "We believe that the product pull-through opportunities make ProTechan excellent fit with the core activities of WellDynamics. We have alreadydemonstrated this on many projects globally where we have worked closely withWellDynamics to serve our common customers." Within WellDynamics, the ProTech division will continue to provide its renownedhigh standard of solutions and services to the stand-alone monitoring market andthe partnership will address the increasing customer demand for integrated flowcontrol and monitoring systems. This is an important step for WellDynamicstoward achieving the goal and vision of delivering comprehensive SmartWell(R)advanced well management solutions. The combined expertise and comprehensiveproduct offerings of WellDynamics and ProTech will enhance clients' reservoirmanagement capabilities through innovative and cost-effective reservoirmonitoring and production optimization solutions. Phil Longorio, CEO of WellDynamics, said, "The intelligent well market isgrowing at an exciting rate. The combined energy of our people will enhanceWellDynamics' industry leadership position and will allow us to respond to theever increasing challenges of our clients to deliver new technologies whichimprove reservoir asset value." John-Paul Jones, President of Wood Group Logging Services, said, "ProTech hasbeen a good business for Wood Group and its talented management has created someexcellent technology. Ultimately, however, we considered that ProTech was notcore to our business, and that it would progress better under the ownership ofWell Dynamics, who, along with its shareholders, are ProTech's largest customer." Notes to editors: WellDynamics is the world's market leader in intelligent completion technology.Formed as a joint venture between Halliburton Energy Services and ShellTechnology Ventures, WellDynamics uses advanced intelligent well technology todeliver the world's premier solutions for surface controlled reservoirmonitoring and management of complex wells. As well as its operations inHouston and Aberdeen, WellDynamics has a manufacturing plant in LivingstonScotland, and sales teams and operations in Norway, Brazil, Italy, Dubai, SaudiArabia, Malaysia, Brunei and Australia. Wood Group Production Technology (ProTech) operated as a separate businesswithin Wood Group Logging Services in Wood Group's Well Support division.ProTech employs around 100 people and has operations in Aberdeen, Houston andStavanger. ProTech provides chemical injection systems and reliable permanentdownhole, subsea and surface monitoring systems that supply multi-point pressureand temperature, distributed temperature (DTS) and flow data. ProTech hasdeveloped a range of technologically-advanced systems including ROC gaugesystems, subsea wellhead sensors and ElectroFiber, an electro-optical fibersystem offering cost-effective, efficient monitoring solutions to welloperators. Wood Group Logging Services (WGLS) specializes in cased hole well logging,memory production logging and slickline services. Wood Group Logging Servicesoperates from 10 locations along the U.S. Gulf Coast, and in Argentina andVenezuela. The company recently scored first in overall customer satisfactionfor pipe recovery, cased hole logging and perforating services in independentsurveys that ranked service companies operating in South Texas and Louisiana,and along the Gulf of Mexico For further information contact: WellDynamics Esmeralda McLeane, Technical ServicesTel: +1 281 297 1200E-Mail : [email protected] Wood Group Carolyn Smith, Corporate Communications - Eastern HemisphereTel: +44 (0) 1224 851099E-mail : [email protected] Bobbie Ireland, Corporate Communications - Western HemisphereTel: +1 281 828 3505E-mail : [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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