Superior Drilling acquires OrBIT completion drill bits

Superior Drilling acquires OrBIT completion drill bits

VERNAL, Utah -- Superior Drilling Products has purchased the exclusive manufacturing, marketing and sales rights and the current inventory of the OrBIT completion drill bit product line from Tenax Energy Solutions.

Consideration for the acquisition was approximately $300,000 in cash plus term payments of up to $2 million subject to future OrBIT sales revenue over a two-year period. The agreement also provides SDPI the right of first refusal on any new or additional intellectual property of Tenax Energy Solutions.

Troy Meier, CEO of Superior Drilling Products commented, "The OrBIT drill bit technology opens up the completion and workover markets for our downhole tool manufacturing business. With the recent commodity price reductions, workover and completion activities are likely to become a greater focus for capital spending by the exploration and production companies that we serve as they work to get the most out of their existing production fields."

"With the addition of this technology, we are now able to offer a lower cost method of drilling frac plugs and to re-enter producing wells for workover and re-completion activities," he added.

The OrBIT drill bits are designed to perform completion and workover activities in a more efficient and cost effective manner through the use of carbide cutting structures on a unicone bit design. As a result, the OrBIT tool is able to minimize milling time in the wellbore, far exceeding the industry norm for similar tools.