Pioneer Drilling Company (AMEX: PDC) today announced that it has completed a new senior bank credit facility.

Nov 2, 2004

NOVEMBER 2, 2004 – SAN ANTONIO, TEXAS – Pioneer Drilling Company (AMEX: PDC) today announced that it has completed a new senior bank credit facility.

Pioneer’s new $47 million senior secured credit facility consists of a $7 million revolving line and letter of credit facility and a $40 million acquisition facility for the acquisition of drilling rigs, drilling rig transportation equipment and associated equipment. The new credit facility carries an interest rate equal to Frost National Bank’s prime rate (4.75% at October 29, 2004), can be drawn as needed over the next two years and is secured by certain of the Company’s assets, including drilling rigs, associated equipment and receivables. The $47 million facility was led by Frost National Bank and includes the Bank of Scotland and Zions First National Bank.

William D. Hibbetts, Pioneer’s Senior Vice President and Chief Financial Officer, stated, “Throughout 2004, we have focused on growth, improving shareholder liquidity and strengthening our balance sheet. To that end, we completed a series of transactions, including a $23.8 million private placement of equity in February, the conversion of $28 million of subordinated debentures into common equity and the issuance of additional common equity through a secondary public offering in August. With the payment of substantially all of our remaining debt in August and September, we are essentially debt free. Through this new credit facility, we are positioned to seize upon attractive acquisition opportunities and continue to expand our asset base.”

 

Pioneer Drilling Company provides land contract drilling services to independent and major oil and gas operators drilling wells in North, East and South Texas and North Louisiana. Pioneer’s fleet consists of 36 land drilling rigs that drill in depth ranges between 8,000 and 18,000 feet.

 

This press release contains various forward-looking statements and information that are based on management’s belief, as well as assumptions made by and information currently available to management. Forward-looking information includes statements regarding acquisition opportunities and the continued expansion of Pioneer Drilling’s asset base. Although the management of Pioneer Drilling believes that the expectations reflected in such forward-looking statements are reasonable, Pioneer Drilling can give no assurance that those expectations will prove to have been correct. Such statements are subject to various risks, uncertainties and assumptions. Should one or more of those risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. These risks, as well as others, are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission, including the Company’s annual report on Form 10-K for the fiscal year ended March 31, 2004.

 

 


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