CALGARY, Aug. 5, 2011 /CNW/ - Pason Systems Inc. ("Pason" or the "Company") is pleased to announce the acquisition of Austin, Texas based 3PS, Inc. ("3PS") for a purchase price of USD $25 million to acquire all of the oustanding stock of 3PS.
3PS designs and manufactures a drilling sub for the industry that provides real-time accurate torque. The industry in the past has relied on a relative number with lots of room for error. Real-time accurate values are important in today's world to manage critical drilling operations, as today's directional/horizontal wells are pushing the limits of design both on the drill pipe and the rig, and understanding the accurate amount of torque being applied to the string will help to protect the users from critical failures.
Combining this drilling sub with Pason's data collection system will enable the Company to offer its customers the tools they need to evaluate any down-hole problems in real time.
3PS also designs and builds sensors for other parts of the industry including off-shore anchor monitoring, winch line monitoring, and overhead crane load sensing.
With the addition of 3PS, Pason will add to its current suite of drilling data acquisition product offerings, gain exposure to other segments of the upstream oil and gas market, and leverage 3PS's significant design, engineering, production, and quality management expertise.
Pason Systems Inc.
Pason Systems Inc. is a leading provider of rental oilfield instrumentation systems to land-based and offshore drilling rigs worldwide. The company's rental solutions, which include data acquisition, wellsite reporting, remote communications, and web-based information management, maximize rig uptime, improve work efficiency, and minimize operating costs.
Pason's common shares trade on the Toronto Stock Exchange under the symbol PSI.
Certain information regarding the Company contained herein may constitute forward-looking information under applicable securities law. The words "anticipate", "expect", "believe", "may", "should", "will", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward-looking information and statements. Forward-looking statements in this document include statements regarding the acquisition of 3PS including but not limited to the expected benefits of the acquisition; anticipated business prospects and financial performance of Pason; expectations or projections about future strategies and goals for growth and expansion; expected and future cash flows and revenues; and expected impact of future commitments. These forward-looking statements are based upon various underlying factors and assumptions, including those with regards to the anticipated success of the acquired business and the ability of the Company to integrate such business; the state of the economy and the oil and gas exploration and production business, in particular; the Company's business prospects and opportunities; and estimates of the financial and operational performance of Pason.
Forward-looking information and statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking information and statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, the ability of Pason to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of Pason's assets and businesses, the price of energy commodities, competitive factors in the energy industry, changes in laws and regulations affecting Pason's businesses, technological developments, and general economic conditions.
Readers are cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such forward looking statements, although considered reasonable by management as of the date hereof, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
Additional information on risks and uncertainties and other factors that could affect Pason's operations or financial results are included in Pason's reports on file with the Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or through Pason's website (www.pason.com). Furthermore, the forward looking statements contained in this news release are made as of the date of this news release, and Pason does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.