Allis-Chalmers Energy sells drill pipe tong manufacturing assets

Sept. 16, 2008

Allis-Chalmers Energy Inc. announced the recent sale of its drill pipe tong manufacturing assets to ODS International, Inc. Allis-Chalmers continues to provide the rental of drill pipe tongs and a range of pipe handling services, including installing casing and tubing, changing out drill pipe, and retrieving production tubing for onshore and offshore drilling and workover operations.

For the eight months ended August 31, 2008, Allis-Chalmers estimates revenues from the assets sold to ODS were approximately $2.4 million with a loss from operations of approximately $0.7 million. Micki Hidayatallah, Allis-Chalmers’ chairman and chief executive officer, stated, “We believe that manufacturing is not part of our core services and rental operations, but we will continue to benefit from a close relationship with ODS. The sale of this product line meets the strategic objectives of both Allis-Chalmers and ODS, a premier company involved in the manufacture of oilfield products.”