Basic Energy Services, Inc. has announced that it has signed a letter of intent to purchase substantially all of the assets of G & L Tool, Ltd., an oilfield services fishing and rental tool business headquartered in Abilene, Texas, for approximately $80 million.
Basic anticipates that the acquisition will close by the end of the first quarter of 2006 subject to satisfactory completion of due diligence and approval by Basic's Board of Directors.
Ken Huseman, President and CEO stated, "This acquisition supports our strategy of providing a broad range of services to capture a larger portion of our E&P customers' capital and operating spending for well site services. G&L has a great reputation for customer service developed over more than 50 years in the business and has the management and organization to support expansion of their business throughout our existing markets."
Basic Energy Services, with a fleet of more than 300 well servicing rigs, provides a range of well site services to oil and gas drilling and producing companies throughout the major oil and gas regions in Texas, Louisiana, Oklahoma, New Mexico and the Rocky Mountain States.
G&L Tool Company is one of the largest independently owned fishing and rental tool companies in the United States with 16 locations in Texas, Oklahoma, New Mexico and Colorado.
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