Superior Energy to buy Complete Production Services for $2.7 billion

Superior Energy Services-a US-based provider of specialised oilfield services and equipment, today agreed to buy Complete Production Services Inc in a cash-and-stock deal valued at $2.7 billion, in order to expand into the shale gas services sector.

Complete is a leading oilfield service provider focused on the completion and production phases of oil and gas wells. The Houston-based company has established a significant presence in shale gas in North America that it believes have the highest potential for long-term growth.

Since shale gas is becoming an important in future oil and gas production, Complete is most active areas in North America including the Haynesville Shale in North Louisiana, the Marcellus Shale in Pennsylvania, the Bakken Shale in North Dakota, the Fayetteville Shale in Arkansas, the Woodford Shale in Oklahoma, the Barnett Shale region of North Texas and several key basins in the Rockies.

Under terms of the agreement, Complete stockholders will receive 0.945 common shares of Superior and cash of $7.00 in exchange for each share of Complete common stock, representing a premium of 29 per cent to Complete's average price over the last two months.

Upon closing, Superior and Complete stockholders are expected to own approximately 52 per cent and 48 per cent respectively of Superior.

"The combination of Superior and Complete creates a top-tier diversified oilfield services company with the products, technologies and talented people that are critical to helping our customers create value, particularly in unconventional fields in North America," said David Dunlap, Superior's president and CEO.