Tasman Oil Tools has entered into an agreement to acquire an Asia based oil tool rental fleet group.

Tasman is pleased to announce that it has entered into an agreement to acquire a complementary oil tool rental fleet based in Asia, as a result of the liquidation of a competitor group. The purchase price is up to a maximum of US$4.0 million and again demonstrates Tasmans’ continued investment within the industry sector.

This opportunity has arisen due to the insolvency of the Petroleum Pipe Company Ltd and the liquidation or expected liquidation of some of its group and associated companies.

The fleet to be acquired is based in the Far East. It complements the recently formed JV in Malaysia and will expand Tasmans’ rental activities further into the ASEAN Region. The fleet will also be available to other Tasman locations in the Australasian and Middle Eastern regions.

Completion of the acquisition is conditional upon certain further logistical steps being taken to verify the assets and their certificates of conformity and is expected to take place within the next ten days.

The benefits that will accrue to Tasman through this acquisition will include:

– Giving access to a large hire fleet, of a premium quality
– Enabling a substantial increase in broad and fast availability of hire fleet to our customers
– Providing a new geographical location from Singapore
– Reducing the average age of the combined hire fleet

Ian Gardner (Tasman Managing Director) commented “This is a further, major step in cementing Tasman Oil Tools position within the market and the region. It also gives another example of continued investment; a very positive statement supporting our forward-looking strategy.”