OKC-based Aspen Group buys oilfield service company

Journal Record, The (Oklahoma City), Aug 10, 2001 by David Page

Aspen Group Resources has acquired United Cementing and Acid Co., a privately held oilfield service company based in El Dorado, Kan.

The purchase price was $1.04 million in cash and $250,000 in restricted stock, subject to regulatory approval.

United Cement operates a cementing and acidizing business providing oilfield services to oil and gas operations. The acquisition will drive operating efficiencies in Aspen's Kansas operations by integrating this service, said Jack Wheeler, chairman and CEO of Oklahoma City-based Aspen. Aspen projects annual revenue from third-party sales of $1 million.

The acquisition includes equipment used in cementing and acidizing oil wells.

United Cement was a very good opportunity for Aspen to reduce cost, grow revenue and expand our network in Kansas, Wheeler said. The El Dorado field has been a very profitable and productive area and one where we intend to increase our focus.

Aspen also provided updates on its current drilling programs in Kansas and Oklahoma.

In Kansas, the first three wells in Aspen's five-well program have been successfully drilled. The L.W. Robison South no. 21 was drilled to 2,533 feet, the L.W. Robison North no. 4B was drilled to 2,673 feet, and the Mills 1X was drilled to 2,548 feet. The initial three wells are waiting on completion and testing.

The fourth well in the program, the Frank Robinson E no. 46 spud Thursday. Aspen is the operator of the five wells and owns a 100 working interest percent interest in all but the L.W. Robison North no. 4B, where it owns a 50 percent working interest.

In Oklahoma, the McCaslin no. 4 spud on July 22 and is drilling at below 9,500 feet. The McCaslin is in Woodward County and is targeting the Morrow Sands in the Anadarko Basin. Target depth of the well is estimated at 10,000 feet.

Aspen is the operator and owns a 52 percent working interest in the Well.

Aspen also announced that it had participated in the successful completion of four wells in July. The wells were in Garvin, Grady, Roger Mills and Washita counties in Oklahoma and collectively flowed 1,827 barrels of oil equivalent per day. Aspen owns an average working interest of 3.57 percent in these wells.