Coretrax, the specialist well construction and intervention company, said Nov. 26 it has acquired Churchill Drilling Tools as part of an ongoing growth and expansion strategy.
Aberdeen headquartered Coretrax, which supports global well construction, completion and plug and abandonment operations, has bases in the U.K., Middle East and South East Asia and is planning entry into new regions.
It has acquired Churchill for an undisclosed sum and will integrate its extensive downhole product portfolio into a new group, with Churchill’s employees joining the Coretrax team. Churchill Drilling Tools launched in 2002 and is established as a high quality and innovative global drilling tools business with operational bases in Aberdeen, Houston and Dubai. Its extensive product range covers drilling, completion and plugging and abandonment (P&A) operations.
“Churchill’s first-class technology, talented team and reputation for quality were a compelling draw for Coretrax as we push ahead with plans to widen our well construction and intervention offering and enter new global markets,” Kenny Murray, CEO of Coretrax, said.
Coretrax secured a significant investment from private equity firm Buckthorn Partners last year to prepare for growth. Now employing 200 people, the company continues to invest heavily in developing technology and expanding its service and engineering capabilities.
A group structure will be formed, which will include Coretrax, Churchill and expandable tubular well solutions specialist Mohawk Energy, following its acquisition by Buckthorn Partners earlier this year.
Current market conditions are expected to drive a “significant increase in bankruptcies” for E&P companies during the second half of 2020, one expert says.
Devon Energy had been actively shopping the Permian Basin assets, and others in the Rockies, the past several months.
The Alta Mesa transaction represents the sixth acquisition by partnerships between Tom Ward-led Mach Resources and private equity firm Bayou City Energy Management.