Rock Hill Capital Group has acquired a majority stake in Diversified Well Logging, a leading provider of mud logging services, equipment, personnel and technology to the onshore and offshore oil and gas exploration and production industry. Terms of the deal were not released.
Rock Hill Capital Group (Rock Hill) today announced that it has closed on a majority recapitalization of Diversified Well Logging, LLC (“DWL” or the “Company”). DWL is based in Reserve, LA and is a leading provider of mud logging services, equipment, personnel and technology to the onshore and offshore oil and gas exploration and production industry.
“We are excited to partner with DWL’s management team and the Klibert family and to assist the Company in its continued growth,” said Randall B. Hale, Founder & Managing Director of Rock Hill. “We believe DWL’s competitive position, both onshore and offshore, provides them with a unique opportunity to offer superior service to their customers,” Mr. Hale continued.
“We look forward to working with Rock Hill. Their strategic guidance and financial expertise will serve to accelerate our growth,” said Richard Klibert, CEO of DWL. In addition, he stated, “Rock Hill has taken the time to understand our business and can assist us in taking DWL to the next level.”
Debt financing for the transaction was provided by Encore Bank, NA and affiliates of Deerpath Capital.
Diversified Well Logging, LLC ( www.dwl-usa.net ) was founded in 1991 to exploit its well-site service capabilities in the U.S. oil and gas industry, primarily in onshore gas basins and offshore in the shallow and deep water Gulf of Mexico. Mud logging (also known as “data logging” or “surface logging”) is provided at the drilling site to evaluate the geology and geochemistry of zones as they are drilled. The mud logging team operates from a mobile laboratory unit near the well, where they collect and analyze fluid and gas samples as well as rock chips from drilling fluid effluent (i.e. mud). Mud logging enables operators to determine if oil and gas are encountered when drilling and provides critical safety functions such as determining pore pressure, kick control and ambient gas monitoring.
DWL’s mud logging services collect information in real-time to optimize drilling paths to maximize reserve recovery and production. Additionally, mud logging improves drilling rates, reduces costs and enhances safety. DWL uses an array of reliable sensors, hardware and software to gather and evaluate data for drilling efficiency, geologic control, formation evaluation and safety. These services also provide clients with real-time access to rig site data from any location.
In addition to the monitoring services described above, the Company has begun offering geosteering as an additional service. Geosteering is the directional control of a well based on the results of downhole geological logging measurements.
About Rock Hill Capital Group
Founded in 2008, Rock Hill Capital Group, LLC ( http://www.rockhillcap.com/ ) is a private equity firm that targets investments in growing middle to lower middle market companies with enterprise values up to $75 million. Rock Hill seeks to assist successful entrepreneurial companies located in the southern United States to continue to grow and expand their business. Currently, Rock Hill has over $100 million of committed capital under management through Rock Hill Capital I, L.P. and Rock Hill Capital II, L.P. Other current portfolio companies include Alpha Technical Services Corporation, LLC ( www.alphatechserv.com ), Applied Global Technologies, Inc. ( www.appliedglobal.com ), Blackhawk Specialty Tools, LLC ( www.blackhawkst.com ), Kiva Kitchen and Bath Holdings, LLC ( www.kivahome.com ) and SouthWaste Services Holdings, LLC ( www.southwaste.com ).