by Ståhl
Superior Drilling Products, Inc. (NYSE American: SDPI) (“SDP” or the “Company”), a developer and manufacturer of drilling tool technologies, announced that its subsidiary, Hard Rock Solutions, LLC, has entered into an exclusive partnership agreement and distribution agreement with Bin Zayed Petroleum for Investment Limited (Bin Zayed Petroleum), a Seychelles-registered company. The agreement covers the full diversity of sizes of SDP’s patented Drill-N-Ream® (DNR) drill well conditioning formula for the Middle East/North Africa (MENA) and will remain in effect as long as functionality and benefit-sharing objectives are met during the term of the agreement.
“This additional dating validates the functions of our generation, and we are excited to team up with the experienced team at Bin Zayed Petroleum,” said Troy Meier, President and CEO of SDP. “We have demonstrated the price our DNR supplies at the well site, but given our limited resources, our success in the market has been limited, especially as COVID-related restrictions have limited travel and visitor access. This new partnership provides DNR and, above all, our Superior Drilling Products logo particularly better exposure in the Middle East and North Africa regions. We expect this to increase generation adoption rates as we improve DNR availability and access.
The agreement stipulates that Bin Zayed Petroleum will acquire the company’s DNR equipment and the company will fix and acquire the acquired equipment at a fixed price agreed according to the tool.
Bin Zayed Petroleum will acquire approximately $13 million of DNR in quarterly stages over the next twelve months, subject to determined situations to be evaluated in each tranche of purchase. The first tranche of acquired shares of approximately $4 million went into effect with the signing of the agreement. Market penetration forecasts are still in the process of being defined and will be adjusted annually.
Edward Envia, Chief Operating Officer of Bin Zayed Petroleum, said: “We are very pleased to marry SDP and upload their complex drilling solution to our product and service offerings. We have a significant call for DNR and expect consumers to temporarily embrace the generation as we leverage our well-established sales and marketing groups and extensive visitor relationships.
DNR is a unique generation of drilling meetings that increases fin diameter while conditioning the well drilling process, eliminating the need for a compromised drilling cycle. The MENA countries covered by the new exclusive agreement are: Algeria, Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Lithrougha, Morocco, Oman, Qatar, Saudi Arabia, Syria, Tunisia, United Arab Emirates and Yemen.
Mr. Meier concluded, “Like our North American distribution agreement, this is a perfect sales style distribution date that will now exist in those key end markets. This agreement strengthens our ability to expand globally and, more importantly, monetizes the component of our existing DNR securities fleet that has been established for the Middle East.
Revenue related to the initial acquisition of shares will be identified in the third quarter of 2022.
About Superior Drilling Products, Inc.
Superior Drilling Products, Inc. es a state-of-the-art drilling tool generation company that provides cost-effective responses that improve production power for the oil and herbal fuel drilling industry. The company designs, manufactures, maintains and sells drilling tools. SDP drilling responses come with the patented Drill-N-Ream® drilled well conditioning tool and the patented Strider™ oscillation formula generation. Tool production facility, where it manufactures its answers for the drilling industry, as well as products tailored to customers. The company’s expansion strategy is to leverage its expertise in drilling tool generation and state-of-the-art precision machining to expand its product offering and responses to the oil and fuel industry.
More information about the Company can be obtained at: www. sdpi. com.
Safe Harbor With Respect to Forward-Looking Statements
This press release contains forward-looking statements and data that are subject to a number of hazards and uncertainties, many of which are beyond our control. All statements except statements of past fact included in this release, including but not limited to, the good fortune of the distribution association in the MENA region, the timing and price of any tool purchases, the ability to develop penetration of the DNR market, DNR Technical capabilities, the creation of up-to-date market exposure in the Middle East, and the adoption rate of DNR tools are forward-looking statements. The use of the words “may simply”, “believe”, “anticipate”, “intend”, “estimate”, “expect”, “may”, “continue”, “predict”, “potential”, “project”, “anticipates,” “should,” or “plans,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements involve such identifying words. These statements reflect the ideals and expectations of the Company and are subject to pitfalls. and uncertainties that may cause actual effects to differ materially These hazards and uncertainties include, but are not limited to, the duration of the COVID-19 pandemic and the like have an effect on the oil and herbal fuel industry, the effectiveness of the successful expansion in the Middle East, the characteristics that will be had for the advertising channels in North America, the postponement of the advertising of the Strider technology, the good fortune of the advertising strategy Company advertising and prospects for expansion; the Company’s advertising fortunes; the Company’s specialized tools; the effectiveness of its sales efforts; cash flow and liquidity; monetary projections and actual operating effects; the amount, nature and timing of capital expenditures; the availability and terms of capital; government and festival regulations; and general economic conditions. These and other items may adversely affect the effects and monetary effects of the Company’s plans and those described in this document. The Company assumes no legal responsibility to revise or update any forward-looking statements to reflect events or events after the date hereof.
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