Investors: Possibility of Mergers in Oil Service Sector

SeekingAlpha had a short list of potential candidates that might be involved in mergers, some being acquired, some doing the acquiring.

The list is at this link.

I recognize three or four companies on this list as having a presence in the Bakken.

One name that jumps out at me on that list is Helmerich & Payne. I've mentioned them once or twice before on this blog. They manufacture some of the rigs being used in North Dakota, including the FlexRig. Investors might want to revisit this link.

FlexRigs

In the 4Q10 earnings conference call, Hess spokesman mentioned that Hess had among their drilling rigs was a "FlexRig."

On our non-acquired acreage, we had actually 11 rigs operating towards the end of the year. One of those is kind of a FlexRig because it works on refracs and then it does some other work for us. And then we inherited the additional rigs from the acquisitions. So our rig count does stand at 18 rigs currently. 

I had not heard of the FlexRig before, but in yesterday's (Jan 27, 2011) Oil and Gas Journal, Helmerich and Payne, Inc., announced that it received orders to build and operate eight H&P-design FlexRigs, which is due to the industry's focus on shale plays. The unconventional oil patch requires increasingly complex designs, according to the article.

Older conventional equipment is becoming increasing less suitable to many operators. 

The Bakken was not mentioned, but my hunch we will start seeing more of these rigs in North Dakota.