Allis-Chalmers acquires Petro Rentals, Inc.
  by: OilOnline
  Wednesday, October 18, 2006

Allis-Chalmers Energy Inc. has acquired Petro Rentals, Inc., based in Broussard, Louisiana for approximately $29.8 million in cash, which includes the payment of approximately $9.5 million of debt, and 246,761 shares of Allis-Chalmers common stock. The acquisition was funded with cash on hand remaining from its recent equity and debt securities offerings. Based on Petro Rentals' unaudited financial statements, Petro Rentals' EBITDA for the eight month period ended August 31, 2006 was approximately $4.9 million. EBITDA is a non-GAAP item, and additional information and discussion regarding EBITDA is provided later in this release.

With division offices in Broussard, Houma and Arcadia, Louisiana and Alvin, Texas, Petro Rentals serves both onshore and offshore markets. Established in 1987, Petro Rentals provides a variety of quality rental tools and equipment and services that are vital throughout the life of a well, from drilling through plugging and abandonment, with an emphasis on production related equipment and services.