Flotek Industries, and Tasneea Oil & Gas Technologies Announce Shareholder Agreements to Establish Omani Energy Chemistry Technology Enterprise
HOUSTON and MUSCAT, Sultanate of Oman, Nov. 7, 2013 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") and Tasneea Oil and Gas Technologies, LLC ("Tasneea") today announced the execution of Shareholder Agreements to establish an oilfield chemistry manufacturing company and a chemical research company in Oman to serve markets in the Middle East and Africa.
Upon acceptance by Omani commercial officials, Flotek and Tasneea, an affiliate of Gulf Energy, LLC, an Oman-based integrated oilfield service company, will be partners in Flotek Gulf, LLC and Flotek Gulf Research, LLC, Omani-registered companies that will develop, market and produce specialty chemistries for the drilling, completion and production of oil and natural gas.
"The creation of Flotek Gulf and Flotek Gulf Research is a seminal step in our continued growth into new international markets," said John Chisholm, Flotek's Chairman, President and Chief Executive Officer. "The predicted rapid growth of unconventional resource development in the Middle East and North Africa makes this venture even more compelling, especially given accelerated growth in Oman and the location as a central point to serve this very important region. Moreover, we couldn't be more pleased to have Tasneea and Gulf Energy, a rapidly growing international oilfield service provider, as our partner. Over the course of the last several months we have grown to appreciate and respect the expertise at Gulf Energy as well as the hard work and dedication they have to growing their regional presence. We are excited to move forward to the development of infrastructure and commercial operations in the coming months."
Upon acceptance of the corporate filings by Omani officials, the firms will begin the transfer of assets into the companies and development of infrastructure necessary to manufacture and blend oilfield chemistries. Flotek will own 55% and Tasneea 45% of each enterprise. Tasneea will contribute real estate in Oman to Flotek Gulf which will house the manufacturing and blending facility.
It is anticipated that construction will start in early 2014. Prior to the completion of the manufacturing facility, it is contemplated that Flotek Gulf will market oilfield chemistry and fill orders in cooperation with Flotek and its U.S. manufacturing and blending operations.
"We are presently selling and shipping chemistry to the region and expect the direct involvement of Tasneea to increase demand for our chemistry in the coming months," added Chisholm. "We look forward to working with our existing blending capabilities to meet that demand until we complete our Omani development, likely sometime in the first half of 2014."
"Our partnership with Flotek is exciting for both Tasneea and Gulf Energy," said Hilal Hamad Al Busaidy, Chief Executive Officer of Gulf Energy. "Demand for specialty oilfield chemistry continues to increase in the Middle East and African regions and Flotek's expertise will be recognized and appreciated. Our existing clients are constantly seeking ways to improve processes and production and our chemistry offerings will address many existing and future needs."
About Flotek Industries, Inc.
Flotek is a global developer and distributor of a portfolio of innovative oilfield technologies, including specialty chemicals and down-hole drilling and production equipment. It serves major and independent companies in the domestic and international oilfield service industry. Flotek Industries, Inc. is a publicly traded company headquartered in Houston, Texas, and its common shares are traded on the New York Stock Exchange under the ticker symbol "FTK."
For additional information, please visit Flotek's web site at www.flotekind.com.
About Gulf Energy, LLC
Gulf Energy, LLC, an integrated energy company formed as a Limited Liability Company in the Sultanate of Oman, combines the experience of personnel, first class equipment with cutting edge technology and a strong emphasis on innovation, reliability, quality, integrity and customer service. This orientation to customer needs and expectations has allowed Gulf Energy to become one of the most dynamic and fastest growing innovative solution providers in the energy industry in the Middle East and North Africa. Gulf Energy has grown its capabilities both intrinsically as well as through collaborating with partner institutions to enrich its oilfield expertise.
Gulf Energy currently works with almost all of the major operators in Oman including Petroleum Development of Oman (PDO), Occidental Petroleum Company (OXY), PTT Exploration and Production Plc (PTTEP), MEDCO, Petrogas E&P and Daleel Petroleum.
For additional information, please visit Gulf Energy's website at www.gulfenergy-int.com.
Certain statements set forth in this Press Release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.'s business, financial condition, results of operations and prospects. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this Press Release.
Although forward-looking statements in this Press Release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, but are not limited to, demand for oil and natural gas drilling services in the areas and markets in which the Company operates, competition, obsolescence of products and services, the Company's ability to successfully integrate the acquired operations of Florida Chemical, the Company's ability to obtain financing to support its operations, environmental and other casualty risks, and the impact of government regulation. Further information about the risks and uncertainties that may impact the Company are set forth in the Company's most recent filings on Form 10-K (including without limitation in the "Risk Factors" Section), and in the Company's other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Press Release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Press Release.
SOURCE Flotek Industries, Inc.