Patterson-UTI acquires Key Energy’s drilling assets for $62 million

Ray Tyson

Onshore drilling contractor Patterson-UTI says it has agreed to purchase the U.S. land drilling assets of Key Energy Services for $62 million.

The deal includes 25 active drilling rigs in the Permian and San Juan basins and the Rocky Mountains, as well as 10 rigs that are currently stacked, Patterson said Dec. 8. Also included in the transaction are related drilling equipment and a rig moving fleet consisting of about 45 trucks and 100 trailers.

The active rigs are mechanical with an average of about 700 horsepower and depth ratings of around 10,000 feet.

Patterson, based in Snyder, Texas, currently owns 361 land-based drilling rigs that operate primarily in Texas, New Mexico, Oklahoma, Louisiana, Mississippi, Colorado, Utah, Wyoming and western Canada.

Key Energy said it will incur a yet unspecified loss on the sale of its assets to Patterson.

Key Energy, based in Midland, Texas, provides energy operations including well servicing, contract drilling, pressure pumping, fishing and rental tool services and other oilfield services. The company has operations in all major onshore oil and gas producing regions of the continental United States and internationally in Argentina and Egypt.