HOUSTON, Feb. 11, 2014 /PRNewswire/ -- Flotek Industries, Inc. ("Flotek" or the "Company") (NYSE: FTK) today announced it has entered into a Letter of Intent (the"LOI") to acquire Plano, Texas based SiteLark, LLC. ("SiteLark").
SiteLark is a leading provider of quality reservoir engineering and modelling services for a variety of hydrocarbon applications. Founded in 2000, SiteLark works around the globe developing innovative solutions to extract information from available data to enrich reservoir simulation models, builds predictive models for unconventional gas and performs a variety of engineering studies related to fluid characterization, material balance, decline curves and pressure transient analysis. SiteLark also provides proprietary software solutions for the petroleum industry which assists engineers with reservoir simulation, reservoir engineering and waterflood optimization.
SiteLark, founded by Deepankar Biswas, PhD, also provides engineering services for Enhanced Oil Recovery projects and serves as a provider of in-depth modelling and evaluation services for Eclipse IOR Services, or EOGA, a wholly owned subsidiary of Flotek.
Dr. Biswas has nearly two decades of reservoir modelling and analysis experience in industry, research laboratory and field operations. His expertise includes interdisciplinary projects in conducting reservoir engineering and simulation studies, litigation support, reservoir characterization, simulator development including black oil, compositional, thermal and naturally fractured reservoir simulation projects; and working on waterflooding/gas-cycling and hydraulic fracturing projects. His experience spans assignments in Middle-East, Europe, Latin America, Asia and continental USA. He had previous tenures with such companies as Mobil E&P, ONGC, TXU Energy Trading, Blade Energy Partners and DeGolyer and MacNaughton. He has developed next-generation reservoir simulator for Mobil Exploration and Production. He has performed Integrated Reservoir Studies for major international fields both at Mobil and DeGolyer and MacNaughton.
Dr. Biswas holds a Ph.D. in Petroleum Engineering from the University of Texas at Austin.
"The addition of Dee and the SiteLark team to the Flotek family is another key step in our quest to build a best-in-class EOR practice focused on offering key services from initial modelling of projects to evaluation and adjustment of those projects," said John Chisholm, Chairman, President and CEO of Flotek. "Not only does Dee bring a long and successful history in the industry, he brings a deep knowledge of EOGA, its clients and its business. In addition, his proprietary software will provide Flotek with new opportunities to assist clients with complex problems, including a proprietary system for evaluating and predicting shale productivity. SiteLark stands in support of Flotek's continued commitment to advanced oilfield technology for our clients."
"We are excited to join the Flotek team as we look for ways to expand our horizons and provide our services to a broad spectrum of energy clients," said Deepankar Biswas, Ph.D., President of SiteLark. "Our work with EOGA has been an important part of our business over the past three years and an important part of EOGA's growth. Working together – under the same roof – will improve our collaboration and accelerate our growth. Moreover, our ability to quickly understand Flotek's value proposition, demonstrate its beneficial effects in reservoir productivity and mimic representative cases in synthetic reservoir models will have immediate impact on building rapport with the customers, both domestic and international."
Flotek will provide total initial consideration of $0.6 million in cash and Flotek common stock for SiteLark, subject to completion of due diligence and certain adjustments. The parties anticipate completing pre-closing requirements within 30 days.
Upon the completion of due diligence and other requirements, Flotek expects to close on the SiteLark acquisition by March 31, 2014.
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.
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 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.