NESR Secures Its First Multi-Year Directional Drilling Services Contract in Saudi Arabia

Rhea-AI Summary

National Energy Services Reunited Corp. (NASDAQ:NESR, NASDAQ:NESRW) announced a long-term contract for Directional Drilling services in Saudi Arabia, which includes Measurement While Drilling and Well Engineering services for up to four years. This contract follows successful field trials and partnerships, notably with PHX Energy Service Corp., showcasing NESR's ability to deliver efficient drilling solutions. The CEO highlighted the importance of this contract in expanding NESR's market presence and introducing next-gen technologies in the drilling sector.

Positive

• Awarded a long-term contract for Directional Drilling services in Saudi Arabia.
• Partnership with PHX Energy Service Corp. has led to successful field trials and efficiency improvements.
• Contract duration of up to four years provides a stable revenue stream.
• Opportunity to introduce next-generation technologies during the contract term.

Negative

• None.

DHAHRAN, SAUDI ARABIA / ACCESSWIRE / September 13, 2022 / National Energy Services Reunited Corp. ("NESR" or "the Company") (NASDAQ:NESR)(NASDAQ:NESRW), an international, industry-leading provider of integrated energy services in the Middle East and North Africa ("MENA") region, has announced that the company has been awarded a long term contract for Directional Drilling services in the Kingdom of Saudi Arabia, covering Directional Drilling ("DD"), Measurement while Drilling ("MWD"), Performance Drilling, Well Engineering and Logging While Drilling ("LWD") services for up to four years starting with immediate effect.

This award reflects the culmination of several years of research and development investment in several field trials to demonstrate NESR's ability to drill and deliver vertical and directional wellbores in record times with leading-edge technologies. Over the last year, NESR's successful partnership with Phoenix Technology Services (PHX Energy Service Corp. or "PHX") has led to several DD records across several fields which have saved significant drilling time for customers. This award also provides NESR the platform for the introduction of next generation technologies in the drilling and measurement spheres which the Company anticipates introducing over the course of this contract.

NESR CEO & Chairman Sherif Foda commented, "These awards represent a major milestone in our growth strategy to establish NESR as one of the major players in the Directional Drilling market and paves the way to introduce our next gen technologies which enable our customers to get access to best in class technologies being adopted globally. We are very proud of our partnership with John Hooks and PHX for their highly differentiated Velocity MWD system and Atlas motors which along with our Well Engineering capabilities have led us to showcase to our customers what can be achieved in terms of drilling efficiencies that have exceeded or met field standards in a large majority of our runs. I would like to thank our valued customers for their trust in our R&D and service delivery platform, particularly in this technologically sophisticated realm of the OFS market, where NESR is focusing on its innovative model of importation of global partnership technologies into MEA, investments in technology companies globally with the aim of jump starting our local engineering and manufacturing investments as we plan for our future state-of-the-art facility in the King Salman Energy Park "SPARK."

About National Energy Services Reunited Corp.

Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. With over 5,000 employees, representing more than 60 nationalities in over 15 countries, the Company helps its customers unlock the full potential of their reservoirs by providing Production Services such as Hydraulic Fracturing, Cementing, Coiled Tubing, Filtration, Completions, Stimulation, Pumping and Nitrogen Services. The Company also helps its customers to access their reservoirs in a smarter and faster manner by providing Drilling and Evaluation Services such as Drilling Downhole Tools, Directional Drilling, Fishing Tools, Testing Services, Wireline, Slickline, Drilling Fluids and Rig Services.

Forward-Looking Statements

This communication contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Any and all statements contained in this communication that are not statements of historical fact may be deemed forward-looking statements. Terms such as "may," "might," "would," "should," "could," "project," "estimate," "predict," "potential," "strategy," "anticipate," "attempt," "develop," "plan," "help," "believe," "continue," "intend," "expect," "future," and terms of similar import (including the negative of any of these terms) may identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this communication may include, without limitation, statements regarding the potential scope and timing of the financial restatement, plans and objectives of management for future operations, projections of income or loss, earnings or loss per share, capital expenditures, dividends, capital structure or other financial items, the Company's future financial performance, expansion plans and opportunities, and the assumptions underlying or relating to any such statement.

The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: the amount, scope and timing of any financial restatement that may be required, information that may be discovered in the course of the Company's completion of the reconciliations of its financial results and related analysis; the ability to recognize the anticipated benefits of the Company's recent business combination transaction, which may be affected by, among other things, the price of oil, natural gas, natural gas liquids, competition, the Company's ability to integrate the businesses acquired and the ability of the combined business to grow and manage growth profitably; integration costs related to the Company's recent business combination; estimates of the Company's future revenue, expenses, capital requirements and the Company's need for financing; the risk of legal complaints and proceedings and government investigations; the Company's financial performance; success in retaining or recruiting, or changes required in, the Company's officers, key employees or directors; current and future government regulations; developments relating to the Company's competitors; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic and market conditions, political disturbances, war, terrorist acts, international currency fluctuations, business and/or competitive factors; and other risks and uncertainties set forth in the Company's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC").

You are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. The Company disclaims any obligation to update the forward-looking statements contained in this communication to reflect any new information or future events or circumstances or otherwise, except as required by law. You should read this communication in conjunction with other documents which the Company may file or furnish from time to time with the SEC.

For inquiries regarding NESR, please contact:
Blake Gendron - VP Investor Relations & Business Development
National Energy Services Reunited Corp.
832-925-3777
investors@nesr.com

SOURCE: National Energy Services Reunited Corp

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FAQ

What is the significance of NESR's new contract awarded on September 13, 2022?

NESR was awarded a long-term contract for Directional Drilling services in Saudi Arabia, which is crucial for its growth strategy.

How long is the Directional Drilling contract NESR secured?

The Directional Drilling contract is for up to four years.

What services are included in NESR's new contract in Saudi Arabia?

The contract includes Directional Drilling, Measurement While Drilling, Performance Drilling, and Well Engineering services.

What company has partnered with NESR for this contract?

NESR has partnered with PHX Energy Service Corp. to enhance drilling efficiencies.

How does NESR plan to use this contract to its advantage?

NESR plans to utilize the contract to introduce next-generation technologies in the drilling sector.