Apr 08 - Saxon in Exclusive Discussions With Schlumberger and First Reserve for Sale of the Company for C$7.00 Per Share

Source Company Web Site
Company Sword Canada Acquisition CorporationFirst Reserve CorporationSchlumberger 
Tags Deals, Oil Services
Date April 21, 2008

Saxon Energy Services Inc. ("Saxon") (TSX: SES) announces that it is in exclusive discussions with Schlumberger Limited and  First Reserve Corporation respecting a transaction where a corporation controlled by them with Saxon management participation, would acquire all of Saxon's outstanding shares for C$7.00 per share. A Special Committee of the Board of Directors has been established and the Committee has agreed to negotiate exclusively with these parties until May 5, 2008.

Schlumberger is the world's leading oil field service company. In 2007,  Schlumberger's revenue was U.S. $23.28 billion. First Reserve is one of the world's leading private equity firms focusing on the energy industry.

Saxon is issuing this press release in response to recent volatility in its share price and speculation regarding a potential acquisition of Saxon.

No acquisition agreement has been entered into and accordingly no assurance can be given that these discussions will lead to any firm offer being made to acquire Saxon.

Saxon and Schlumberger are partners in drilling joint ventures in Mexico and Colombia that have resulted in  Schlumberger being among Saxon's largest customers. Saxon estimates that approximately 16% of Saxon's 2008 revenue will be associated with these joint ventures. The Special Committee have been advised by Saxon's management that they believe that its continuing relationship with  Schlumberger in Mexico, Colombia and other markets is critical to Saxon's future growth.

Saxon will make no further announcements or communications until either an agreement has been reached to acquire Saxon or discussions are terminated without such an agreement being reached.

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