ADES acquires thirty-one onshore drilling rigs

London-listed holding company ADES International has signed a definitive agreement with Weatherford International to acquire thirty-one onshore drilling rigs for roughly $287.5m.

ADES will take control of Weatherford's onshore drilling operations, including the firm's associated assets, contracts, management systems and approximately 2,300 employees and contract personnel spread across Algeria, Kuwait and Saudi Arabia.

The group believes the substantial presence and track record will enable it to expand its presence across "attractive pre-selected markets within the Middle East and Africa", in line with its strategy.

As part of the acquisition, financed through a combination of cash and secured debt instruments, ADES will receive twelve rigs in Kuwait, eleven rigs in Saudi Arabia, six rigs in Algeria and two rigs in Southern Iraq.

Twenty of the rigs are currently operational and the remaining eleven will be used in tendering activities and for strategic inventory purposes that will enable ADES to continue to grow.

Upon completion, set for some point during the second half of the year, the rigs are expected to generate annual revenues of $150m.

Dr Mohamed Farouk, chief executive of ADES International, said, "We are truly delighted to have signed this agreement with Weatherford, where its reputation as one of the world's largest oilfield service companies and its deep-rooted knowledge and experienced professionals in over 90 countries guarantees that this substantial asset and personnel addition will be a net positive for ADES."

"This landmark transaction significantly expands ADES' total fleet and more than doubles its operational fleet, in line with our strategy of executing smart acquisitions, alongside building our backlog and participation in tenders," added Farouk.

As of 1200 BST, ADES shares had shot up 14.5% to $15 each.