Key Energy Sells Marine Well-Service Assets

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
$17.9MM
Description

Sold marine well-service barges,associated assets and certain ancillary assets previously purchased from a subsidiary of Moncla in 2007.

Key Energy Services Inc., Houston, (NYSE: KEG), through subsidiaries Key Energy Service LLC, Houston, and Key Marine Services LLC, Delaware, has sold its marine well-service barges and associated assets and also certain ancillary assets to Texas-based Moncla Co. LLC for approximately $17.9 million in cash.

The assets were previously purchased from Moncla Well Service Inc., a subsidiary of Moncla Co., in 2007.

The acquired marine well-services barges contributed approximately 1.2% of Key Energy's total U.S. rig hours during 2009 and approximately 2% of the company's total U.S. rig hours during first-quarter 2010.

The effective date is May 13. Texas-based limited partnership Second 4 M Ltd. was payment agent for the sellers.

Analysts at Raymond James & Associates Inc. note that the deal "will likely drop (its) expectations for rig hours in 2010," but believes the expectation for an uptick in international activity "should be able to help offset these sales."