Listed Norwegian oil and gas explorer AGR Group has agreed to acquire Ocean Riser Systems, a drilling technology developer.
The buyer will issue shares in a new entity called Drilling Services Holdings as consideration for the purchase, which is subject to approval by the boards of both companies.
As a result of the deal, AGR will gain access to Norway-based Ocean Riser Systems’ technology and intellectual property, which it believes will complement its enhanced drilling solutions services.
Upon completion, the target’s shareholders will have a 17.5 per cent share in Drilling Services Holdings, with the remainder to be owned by AGR.
Ocean Riser Systems is headquartered in Lysaker and was formed in 2002.
Headed by chief executive Lars Bjerke, the company develops technology designed to regulate and manage downhole pressure during drilling operations.
It also aims to reduce deepwater costs to a level comparable to shallow water drilling, as well as increasing reservoir recovery to fixed platform field levels.
AGR provides solutions which complement oil and gas companies’ capabilities and improve the safety of oil recovery operations.
Based in Straume, its RMR and CTS technologies have been deployed on over 500 wells and the company itself has drilled more than 400 wells in the last ten years, including the world’s deepest high pressure and high temperature (HPHT) well.
AGR is headed by chief executive Sverre Skogen and recorded earnings before interest, taxes, depreciation, and amortisation of NOK 247.18 million (USD 40.40 million) in fiscal 2011, up 25.2 per cent on the NOK 197.38 million (USD 32.26 million) recorded in 2010.
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