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| The Red Baron Acquisition Expands Customer Service Capabilities | Smith
Drilling & Completions' sales grew by 29 percent in
1996. In acquiring The Red Baron (Oil Tools Rental) Ltd.,
this business unit expanded its product and service
offerings to new and existing geographic service areas.
Headquartered in Aberdeen, Red Baron operated service
facilities in Scotland, England, Norway, the Netherlands,
Middle East, Vietnam and Malaysia. Red Baron has been an acknowledged leader for over a decade in fishing, remedial and downhole cutting services. Additionally, The Red Baron specialized in small diameter tools which can be used with flexible, coiled tubing to perform downhole services. This eliminates the need for drilling or workover rigs normally required to perform these services, saving the customer time and money. Red Baron, like Smith, offered innovative products and services to speed drilling and solve costly problems encountered during the drilling process. Their management and service engineering staff add valuable experience and knowledge to the Smith Drilling & Completions business unit. Red Baron's capabilities in well re-entry and multilateral systems enhance Smith's expertise and service potential in significant markets worldwide. The purchase also brings research and development focused on drilling improvement, reliability and remedial performance. With an expanded range of products, skills and operations, Smith Drilling & Completions supports customers from 52 locations in 23 countries worldwide. |
| First Run of TrackmasterTM Demonstrates New Sidetracking Efficiency | Smith's Trackmaster™ sidetracking system is a recent example of an innovative, cost efficient tool. Before directional drilling can begin in a cased wellbore, a window must be cut in the casing. Before Trackmaster, the sidetracking operation required multiple trips to mill a hole or window large enough to accommodate the full drilling assembly. By accomplishing seven distinct operations in a single trip, Trackmaster makes the job of sidetracking faster and less expensive. In a single trip, Trackmaster's components enable customers to set the angle and direction for the new hole and mill a window in the existing casing. New drilling can now proceed along a different trajectory to avoid a problem or reach a specific target. |