AcquisitionZedi Inc. Announces the Acquisition of SilverJack Articfical Lift Business Unit
CALGARY, ALBERTA--(Marketwire - June 1, 2011) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today announces that it has acquired the SilverJack™ business unit ("SilverJack") from TCB Welding and Construction Ltd. of Brooks, Alberta. For an upfront cash payment of $1.76 million and an earnout, based on revenue performance over a period of 3 years, Zedi will be acquiring all of the business operations, including intellectual property and approximately $635,000 in finished goods inventory. SilverJack has a unique hydraulic pump technology, with patents pending, that has generated significant interest with a number of producers. As an early stage business, with proven technology, there is significant growth potential domestically and internationally. SilverJack's hydraulic pump readily integrates into Zedi's current oil optimization technology and the Company's oil and gas strategies.
Zedi has continued to execute on its strategy of diversification into oil from its foundation of dominance in the Canadian gas measurement market. With oil prices at record levels and gas projected to continue at lower levels for a number of years, this acquisition will continue to drive significant growth. Targeted at lower producing wells, which represent approximately 80% of the North American market, there are currently 29 operating SilverJack pumps in the field, representing both retrofit and new well applications. The reliability of the pumps in the field has resulted in broader adoption and repeat purchases by customers where the technology resolves production problems.
"Over the past three years we have been strategically advancing toward a full oil production solution and we are pleased to add SilverJack to the Zedi technology and solutions suite, as a significant step in reaching that milestone. With the hydraulic pump already fully commercialized, implemented in the field and with a patent pending in Canada and internationally, it contributes to our technology roadmap with what we expect to be another accretive acquisition. The field proven reliability and unique technology were key criteria in our decision to acquire SilverJack," says Matthew Heffernan, President and CEO of Zedi.
"When I look at our overall oil strategy and consider both the development that has been completed to date and the development underway for the optimization of oil production, the SilverJack hydraulic pump ties into our technology platform and vision very well. Customers face an increasing number of wells that produce less than 400 boe/day that experience high water cuts and sand problems, presenting operational challenges that are difficult to solve. This technology is uniquely suited to addressing those wells," says Toku Ito, Chief Technology Officer of Zedi.
Zedi Inc. (TSX VENTURE:ZED) specializes in the end-to-end management of oil and gas production operations. Zedi arms producers from the field to head office with accurate, timely and centralized data to help them make better business decisions. Using technology to gather highly accurate data from well sites, Zedi automatically moves it through critical work processes including web-based field data capture and production accounting systems. Zedi technology is continually evolving in the control and optimization of wells to ensure maximum production and cost reduction. Established in 1987, Zedi has enhanced the operational performance of more than 800 upstream, midstream and oilfield service customers.