Logan International Inc. has announced that two of its U.S. wholly owned subsidiaries have entered into an agreement to purchase certain assets and operations of the Sup-R-Jar drilling jar line from Smith International, Inc.

 

Logan, through its wholly-owned subsidiaries, will acquire the majority of Smith International's North American Sup-R-Jar rental and service assets. In addition, Logan will also receive raw materials and parts inventories, manufacturing specifications and use of the Sup-R-Jar trade name.

 

The purchase price includes the assumption of certain post-closing liabilities and $17.2 million in cash, $15.6 million of which is payable at closing with the remaining $1.6 million payable on delivery of certain inventory items. The transaction is expected to close in early April.

 

Gerald Hage, Logan chief executive officer, stated, "We believe this acquisition fits very well with our strategy of becoming a leading provider of downhole tools. The North American Sup-R-Jar rental tool and our proprietary Xciter tool are both used by drilling contractors and operators, which Logan believes both improve drilling efficiency especially in horizontal wells. The Sup-R-Jar delivers a sharp blow to the drill string to free stuck drill pipe and to assist the drill string as it turns from a vertical orientation to a horizontal orientation. The Xciter tool increases the drilling rate by introducing a vibration into the drill string thereby reducing wellbore friction."

 

Logan International manufactures and sells a comprehensive line of fishing and intervention tools, including retrieving, surface, stroking and remedial tools for a variety of well workover, intervention, drilling and completion activities (LOT); manufactures and sells high-performance poly-crystalline diamond compact (PDC) cutters and bearings (Dennis Tool Company); manufactures and sells packers, bridge plugs and other completion products (Kline Oilfield Equipment, Inc.); provides proprietary multi-zonal completion technology and conventional completion production products and services (Logan Completion Systems Inc.); provides proprietary and patented products and services that are focused on production optimization in sand-laden heavy oil wells (Scope Production Development); and provides proprietary tools that enhance the effectiveness of horizontal drilling (Xtend Energy Services).