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ADES International Holding PLC

ADES International concludes Weatherford transaction picking up remaining rigs in Algeria and Iraq

It paid US$20mln and US$12mln respectively for rigs in Algeria and southern Iraq, with the latter pair set for relocation to Saudi Arabia

oil and gas operations
This concludes a larger US$287.5mln arrangement with Weatherford

ADES International Holding PLC (LON:ADES) told investors that it has now completed its transaction with Weatherford International, to acquire a package of rigs currently in Algeria and Iraq.

For a total of US$32mln, the company has picked up two onshore rigs currently in Algeria and two that are in southern Iraq but are due for relocation to Saudi Arabia.

It concludes the larger deal with Weatherford, which has seen ADES pay a total of US$287.5mln for 31 rigs - comprising 12 in Kuwait, 11 in Saudi Arabia, 6 in Algeria and the 2 in southern Iraq.

READ: Ades revenues jump as rig utilisation picks up

"With the Weatherford acquisition now complete, we have effectively tripled our fleet size and more than doubled our number of operating rigs across an expanded geographical footprint,” said Dr Mohamed Farouk, ADES chief executive.

“Our strategy in 2019 will focus on organic growth and on capitalising on the increased tendering capacity afforded by the eleven uncontracted rigs acquired through the transaction.

“We expect to extract synergies from our larger fleet and are pushing forward an asset integration program to manage the rapid operational growth."

Quick facts: ADES International Holding PLC

Price: $12.80

Market: LSE
Market Cap: $560.56 m
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