Houston-based oilfield-services giant Key Energy Services Inc. has acquired California-based Western Drilling, a horizonal-drilling expert, for $51 million in cash.

Western owns 22 working well service rigs, including six heavy-duty, 24-hour rigs for horizontal drilling projects. Other assets include three stacked-well service rigs and rental equipment used in the workover and rig relocation process.

The Western business is expected to contribute annual revenues of some $38 million and the operations will be integrated into Key's California division.

“With this acquisition, we believe that we are now the market leader in California with 161 working rigs, making Key the largest well service provider to all large oil and gas producers in the state,” company boss, Dick Alario, said in a statement.

Tags: Key Energy Services Inc.