Flotek Industries Executes Letter of Intent with Gulf Energy to Develop Advanced Oilfield Chemistry Prudction, R&D Plants in Oman
Flotek Industries, Inc. (NYSE: FTK) announced this morning the execution of a Letter of Intent (the "Agreement") with an affiliate of Gulf Energy, LLC ("Gulf Energy"), a leading Oman-based diversified oil and gas concern, to construct an advanced oilfield chemistry production facility and create a state-of-the-art research and development organization to address the growing need for advanced oilfield chemistry and analysis in the Middle East and North Africa.
Under the terms of the Agreement, Flotek will own 60% of two new Omani-registered limited liability companies: the first, a chemical production company that plans to construct a production facility – with capabilities similar to the Company's current facility in Marlow, Oklahoma; and the second, a research and development laboratory that will focus on the application of Flotek's leading oilfield chemistries to the challenges of drilling, completion and production in the Middle East and North Africa. Flotek and Gulf Energy will jointly market the products and services of the Company along with Flotek's international marketing partner, Basin Supply Company.
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