July 8, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Patterson-UTI Energy, Inc. (NASDAQ: PTEN) said that it has entered into an agreement for a newly formed subsidiary to acquire pressure pumping and wireline assets from subsidiaries of Key Energy Services, Inc. (NYSE: KEG) for $237.7 million in an all cash transaction. According to Patterson-UTI, the acquisition includes inventory, but excludes other working capital items.

The transaction, which is scheduled to close in September, is subject to termination of the waiting period under the Hart-Scott-Rodino Act.

Patterson-UTI said that the acquisition expands its pressure-pumping presence to the Barnett Shale, Eagle Ford Shale and Permian Basin region. The acquired pressure pumping equipment consists of 214,400 horsepower, including 184,400 of fracturing horsepower and 30,000 horsepower used in cementing, acidizing and nitrogen stimulation.

Around 80% of the fracturing horsepower is comprised of quintuplex pumps that the company said are ideally suited for shale frac work.

The wireline business includes 26 wireline units that operate in the same areas as the acquired pressure pumping assets, as well as regions that include the Bakken Shale and Marcellus Shale. Of the 26 wireline units, 22 are less than five years old, according to Patterson-UTI.

Universal Well Services, Patterson-UTI's existing pressure pumping subsidiary that operates in the Appalachian region and provides fracturing services in the Marcellus Shale, currently has 205,100 horsepower, including 144,000 in fracturing horsepower. This acquisition will bring the total horsepower of Patterson-UTI's pressure pumping operations to 419,500.

In addition, approximately 50,000 horsepower of equipment is currently on order and expected to be delivered over the next nine months.

Texas-based Patterson-UTI Energy’s subsidiaries provide onshore contract drilling and pressure pumping services to exploration and production companies in North America.

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