Pason Systems Inc. announces acquisition of Petron Industries Inc.



    
    Stock Exchange: TSX
    Symbol: PSI
    

    CALGARY, Sept. 11 /CNW/ - Pason Systems Inc. ("Pason") is pleased to
announce that effective today, it has signed a definitive agreement to acquire
privately held Petron Industries Inc. ("Petron"), a designer and manufacturer
of drilling rig instrumentation systems. Headquartered in Houston, Texas,
Petron offers sales and rental of drilling rig instrumentation systems for
both on and offshore applications. Currently Pason and Petron compete with
each other in the U.S. land market where Petron has approximately 15% of the
rig rental base of Pason with a similar, but slightly reduced set of
instrumentation products. Under the terms of the agreement, Pason, through a
wholly-owned U.S. subsidiary, will acquire a 100% interest in Petron, paid
fully in cash, with closing expected to occur October 2, 2009.
    The Petron acquisition is a relatively minor expenditure for Pason and
will not deliver meaningful EBITDA in the near future given the current
depressed conditions in the drilling market. However, this transaction will
compliment Pason's business in a number of areas setting the base for greater
earnings in future periods when oilfield service activity is expected to
rebound. Some of the areas where the acquisition is expected to make a
positive contribution to Pason are:

    
    1.  Technology - Petron has recently upgraded its hardware and software
        platforms using ideas that Pason has considered but not yet
        implemented due to the vastly more challenging task of upgrading
        Pason's much larger fleet of equipment. The Petron technology and
        excellent R&D team permits Pason to verify many key technical
        assumptions thereby reducing risk and ultimately the completion time
        for its own upgrade path.

    2.  Marketing - Petron has an excellent marketing staff that has
        developed strong relationships with Operators and Contractors
        primarily working in Texas and Louisiana. Pason expects to leverage
        these skills, relationships, and the combined product offering into
        widening the gap between itself and its competition.

    3.  International/Offshore - Petron has an immediate solution for
        offshore instrumentation and control panels which fills a hole in
        Pason's product suite. This provides an opportunity for Pason to meet
        the needs of customers who require either a rental or a purchased
        offshore integrated instrumentation solution. In addition, Petron's
        network of agents that market and distribute instrumentation in the
        eastern hemisphere will greatly enhance Pason's limited
        representation in these areas.
    

    Pason Systems Inc. is the world's largest provider of rental oilfield
instrumentation systems that are designed and manufactured for use on
land-based drilling and service rigs. With the Petron addition, Pason looks to
expand in its current market plus add growth in offshore rentals and sold
instrumentation systems.
    Pason's common shares trade on the Toronto Stock Exchange under the
symbol PSI. For additional information visit the website at www.pason.com.

    Certain information regarding the Company contained herein may constitute
forward-looking statements under applicable securities laws. Such statements
are subject to known or unknown risks and uncertainties that may cause actual
results to differ materially from those anticipated or implied in the
forward-looking statements.





For further information:

For further information: Pason Systems Inc., Jim Hill, President and
CEO, Phone: (403) 301-3401, Fax: (403) 301-3499, E-mail: jim.hill@pason.com;
Jim Glasspoole, Chief Financial Officer, Phone: (403) 692-3840, Fax: (403)
301-3411, E-mail: jim.glasspoole@pason.com


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