Superior Drilling Products, Inc. Establishes Service Partner in Middle East
VERNAL, Utah–(BUSINESS WIRE)–Superior
Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or “Company”),
a designer and manufacturer of drilling tool technologies, announced
today that it has entered into a service agreement with Smith
International Gulf Services, LLC (“SIGS”) to support the deployment of
its flagship wellbore conditioning tool, the Drill-N-Ream® (“DnR”), in
the Middle East. A unique drilling technology, the DnR enables more
efficient, cost effective drilling and, by concurrently conditioning the
wellbore, it also simplifies getting casing to bottom.
Troy Meier, Chairman and Chief Executive Officer, commented, “This
agreement represents a vital step in the establishment of our Middle
East business. As we approach the end of our one year market development
research effort and look ahead to gaining market share in the region,
local repair and servicing capability is a necessity. SIGS has a great
reputation and this agreement enables us to rapidly deploy field service
facilities throughout the region by leveraging their extensive regional
experience and infrastructure. Importantly, we are impressed with their
expertise and are confident they will uphold our high quality standards.
This is a key agreement for us as we are very excited about the
potential in the Middle East market.”
Under this agreement, SIGS will provide warehouse space, workshop
facilities and personnel, and tool damage evaluation and repair in
accordance with SDP’s quality standards. Logistical services also
include import/export management, tool storage and dispatch to end
users. Initially, services will be provided in Dubai, UAE with expansion
options into Saudi Arabia and Kuwait. SDP will provide SIGS with the
knowledge and training necessary to service and refurbish DnR tools to
SDP’s standards. The agreement has an initial one-year term and will
automatically renew until terminated by either party. Specific pricing
for the various services to be rendered is currently being reviewed.
Established in 1974, SIGS is a prominent oilfield products and services
provider in the Middle East and Asia. SIGS has earned a reputation for
providing quality high precision work that includes drilling tool repair
among a wide array of offered services. SIGS has Machine Shop Service
centers in Dubai, Kuwait and Saudi Arabia.
About Superior Drilling Products, Inc.
Superior Drilling Products, Inc. is an innovative, cutting-edge drilling
tool technology company providing cost saving solutions that drive
production efficiencies for the oil and natural gas drilling industry.
The Company designs, manufactures, repairs and sells drilling tools. SDP
drilling solutions include the patented Drill-N-Ream® well bore
conditioning tool and the patented StriderTM oscillation
system technology. In addition, SDP is a manufacturer and refurbisher of
PDC (polycrystalline diamond compact) drill bits for a leading oil field
service company. SDP operates a state-of-the-art drill tool fabrication
facility, where it manufactures its solutions for the drilling industry,
as well as customers’ custom products. The Company’s strategy for growth
is to leverage its expertise in drill tool technology and innovative,
precision machining in order to broaden its product offerings and
solutions for the oil and gas industry.
Additional information about the Company can be found at: www.sdpi.com.
Safe Harbor Regarding Forward Looking Statements
This news release contains forward-looking statements and information
that are subject to a number of risks and uncertainties, many of which
are beyond our control. All statements, other than statements of
historical fact included in this release, regarding our strategy, future
operations, financial position, estimated revenue and losses, projected
costs, prospects, plans and objectives of management, are
forward-looking statements. The use of words “could,” “believe,”
“anticipate,” “intend,” “estimate,” “expect,” “may,” “continue,”
“predict,” “potential,” “project”, “forecast,” “should” or “plan, and
similar expressions are intended to identify forward-looking statements,
although not all forward -looking statements contain such identifying
words. Certain statements in this release may constitute forward-looking
statements, including statements regarding the Company’s financial
position, market success with specialized tools, effectiveness of its
sales efforts, success at developing future tools, and the Company’s
effectiveness at executing its business strategy and plans, to include
expansion into the Middle East. These statements reflect the beliefs and
expectations of the Company and are subject to risks and uncertainties
that may cause actual results to differ materially. These risks and
uncertainties include, among other factors, the status of the oil & gas
industry, geopolitical events, the environmental effort to reduce the
use of carbon based energy, our business strategy and prospects for
growth; our cash flows and liquidity; our financial strategy, budget,
projections and operating results; the amount, nature and timing of
capital expenditures; the availability and terms of capital; competition
and government regulations; and general economic conditions. These and
other factors could adversely affect the outcome and financial effects
of the Company’s plans and described herein.
Contacts
Investor Relations:
Deborah K. Pawlowski
Kei Advisors
LLC
(716) 843-3908
dpawlowski@keiadvisors.com
