The contract is for two years – one year and a one-year option. The selection of the company was pursuant to a sealed bid process initiated by the customer in late October 2009. The contract is set to commence on January 1, 2010.
Best Energy has recently been working 9-11 rigs in the Hugoton Basin for other customers. The company noted that activity in the field has been rising steadily over the past month as natural gas prices in the Basin have begun to increase. Assuming no further increases in utilization by its customers at six rigs under the new contract, the company will have increased its fleet utilization to in excess of 15 rigs. Best Energy has 25 rigs available for deployment in its existing fleet. Prior to the implementation of this contract, the company estimated that it had grown its share of the workover market in the Hugoton from 35% one year ago, to in excess of 80% currently.
Eugene Allan, general manager of Best Energy in Liberal, Kansas, said: “We are very pleased to have won this contract. The award of this contract underscores the quality of work provided to our customers by our field personnel, and likewise our information and accounting systems that provide our customers significant comfort in Best’s performance on and after the job. Of equal or greater importance, our being granted this contract speaks to our exceptional safety record in the field. Best Energy Services has logged over a year of no lost time due to safety incidents.”
Based in Houston, Texas, Best Energy Services is a well service/workover provider in the Hugoton Basin.
