Superior Drilling Products, Inc. Announces Joint Market Development Agreement with Weatherford
Test program to prove out Drill-N-Ream®value
proposition in Middle East market
VERNAL, Utah–(BUSINESS WIRE)–Superior Drilling Products, Inc. (NYSE American:SDPI) (“SDP” or the
“Company”), a designer and manufacturer of drilling tool technologies,
announced that it has executed an agreement with Weatherford U.S., L.P.
(“Weatherford”) to launch a joint market development program to
introduce its patented Drill-N-Ream® (“DnR”) well bore
conditioning tool in the Middle East.
Under the development agreement, Weatherford and SDP will demonstrate
the DnR’s capabilities with large Middle East operators in Saudi Arabia,
Kuwait and Oman. The program is planned to continue through June 30,
2018. SDP and Weatherford will each have an in country, local resident
Product Champion to execute the pilot test program of 16 DnR tools. Upon
the technology being proven in the region, the parties plan to enter
into a long-term commercial agreement.
The DnR is a unique tool technology that conditions the well bore during
the drilling process, reducing days on well, increasing penetration
rates and extending the life of MWD (measurement while drilling) tools.
Domestically, the DnR is gaining broad market acceptance with many lead
operators standardizing on the tool.
Troy Meier, Chairman and CEO of SDP, noted, “We are excited to launch
our game-changing technology to new markets with a very accomplished
partner who brings considerable international experience. We expect that
this market development program will readily demonstrate the DnR’s
economic value for operators by accelerating well development through
improved drilling efficiencies. The program will also help us refine our
technical support plans which should enable deep market penetration and
also expansion into other international markets.”
Mr. Meier added, “Our channel partner go-to-market strategy has proven
very successful in North America and we expect we can have similar
success as we establish our presence in international markets.”
Any rental fees generated during the market development program will be
shared between the partners, and SDP will be reimbursed for costs of
repair and maintenance.
About Weatherford
Weatherford is one of the largest multinational oilfield service
companies providing innovative solutions, technology and services to the
oil and gas industry. The Company operates in over 90 countries and has
a network of approximately 860 locations, including manufacturing,
service, research and development, and training facilities and employs
approximately 29,500 people. For more information, visit www.weatherford.com.
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 Strider™ oscillation system
technology. In addition, SDP is a manufacturer and refurbisher of PDC
(polycrystalline diamond compact) drill bits for a leading oil field
services 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. 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, 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
Kei Advisors LLC
Deborah K. Pawlowski, 716-843-3908
[email protected]