Expro Group Acquires PowerWell Services

Expro International Group PLC (the "Company", the "Group" or "Expro") today announces the acquisition of PWS, a leading supplier of well testing and other flow management products and services to the global oil and gas industry for $674.5 million (£366.0 million).

PWS's operations include a global well testing business and a regional fluids analysis business, as well as choke equipment supply and related services to the land well market in the USA. PWS is a portfolio company of First Reserve Corporation, the oldest and largest private equity firm focused exclusively on investing in the energy industry.

The Board believes that the Acquisition represents a significant opportunity for the Group to accelerate its growth and enhance its market position consistent with its continuing strategy. The Acquisition will significantly increase the Group's geographic spread and critical mass by bringing into the Group complementary businesses with a largely different geographic spread, thereby creating a leading global provider of exploration and production well testing and clean-up services. The Acquisition will also expand the Group's portfolio of products and services into choke equipment supply and services.

The combination of the Group and the PWS Group will create a stronger well testing and related services business with an enhanced international footprint. PWS's fluids analysis business is complementary to, and will strengthen, the Group's existing product offering and increase its geographic presence. Expro believes that considerable opportunities exist to further promote PWS's technology and to utilise shared knowledge and research resources in the future.

Graeme Coutts, Chief Executive of Expro, commented: "The Company has had an excellent year both in terms of its financial performance as well as continuing to deliver on our strategic objectives. I am therefore delighted to announce the proposed Acquisition of PWS, a global business which is highly complementary to Expro's and which will significantly enhance our market position and global offering.

"Our strategy has been to develop market-leading businesses based on technology innovation, and this proposed Acquisition will further that strategy. The Company's existing well testing activities and those of PWS are geographically complementary, and PWS's strong presence in several key markets and key customer relationships will provide enhanced growth opportunities for the Company's other services.

"The Acquisition is a significant opportunity for the Company, at a time when the outlook for the upstream service sector is particularly positive."

"The combination of Power Well with Expro creates a clear market leader in well testing services," said David Reamer, CEO of Power Well. "Our employees and customers will benefit from the blending of the skill sets and capabilities of these two fine organizations. Additionally, I expect that the combination will enhance many of our current offerings and open the door to numerous new and exciting opportunities."

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Posted 15/06/06

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