Expro International Group PLC
10 March 2000
EXPRO INTERNATIONAL GROUP PLC
FURTHER US ACQUISITION
Expro International Group PLC ('Expro'), the international
oilfield services company, announced today the acquisition of
Kinley Corporation for $7.5m. Headquartered in Houston, Texas
with turnover of $3m, Kinley is a specialist in monitoring
downhole corrosion in producing wells. Expro will integrate
Kinley as part of its Cased Hole Service business, which together
with the recently announced $35m acquisition of Tripoint, will now
give the Group a material presence in the North American market
with valuable exposure to shallow water, onshore and Canadian
markets.
As operators in the US have increasingly focused on the deepwater
areas of the Gulf, this has increased the opportunities for Expro
to offer its high value added services. Having first opened an
operating base in Lafayette in 1998, to complement its office
facility in Houston, the business has grown strongly. The
customer bases and product offerings of Tripoint and Kinley
complement Expro's existing operations and provide the opportunity
to obtain substantial operating leverage as their products and
services are distributed through Expro's existing distribution
channels in the US and other markets.
John Dawson, Chief Executive of Expro, said:
'The acquisitions significantly raise the Group's profile in the
Gulf of Mexico, which is already experiencing increased activity
levels.
These developments also continue Expro's strategy of reducing its
dependence on the more mature European Market, that presently
accounts for nearly half the Group's business. Further progress
is being made in other overseas markets in Africa and Asia Pacific
that are showing good growth opportunities flowing from our
established network.
Confidence has been returning to the industry, though this has
been tempered with continuing restrictions on spending by our
clients, despite the significant rise in the oil price. The
outlook for the coming year is improving but, as we highlighted at
the interim results in December 1999, the pick-up in client
capital spending in 2000 is likely to be slow and it is not until
calendar 2001 that it is expected to have a significant impact.'
Enquiries:
Expro 0118 959 1341
John Dawson, Chief Executive
Eric Woolley, Finance Director
Cazenove 0171 588 2828
Mike Kirk
Ludgate Communications 0171 253 2252
Robin Hepburn/Denise Peplow
Notes For Editors
Expro is one of the UK's leading independent suppliers of oilfield
services. It provides a closely related range of specialised
services to assist operators in the upstream oil and gas industry
to explore for, appraise, develop and produce hydrocarbon
reserves.
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