Elenburg Exploration, Inc. is an oil and gas drilling company which operates seven highly mobile and efficient drilling rigs in the Rocky Mountain region of the United States. Founded in 1966, the Company is headquartered in Casper, Wyoming and has operational facilities in Billings and Havre, Montana. Elenburg is managed – and was partially owned – by Mr. Nich Wendland and Mr. Gary Elenburg, whose combined tenure with the Company exceeds 50 years. The A.R. Dillard Group, of Wichita Falls, Texas, was the majority owner.
The Dillard Anderson Group was familiar with the unique design of the rigs which Elenburg operates, having served a previous client, Capstar Drilling, which operates a similar design. DAG called on Elenburg, knowing that the demand for drilling services in the region were extremely strong. Mr. Wendland and Mr. Elenburg talked to a number of our previous clients and, based on that feedback, elected to engage us for the sale.
DAG, through its knowledge of the drilling industry and private equity markets, approached a selected number of strategic and financial candidates. One of these was Oil States International, Inc. (NYSE: OIS), the parent company of Capstar Drilling. Due, in part, to the financial success OIS had enjoyed with Capstar, combined with a strategic desire to expand their Rocky Mountain exposure, Oil States offered a premium value for Elenburg.
Mr. Wendland and Mr. Elenburg achieved their liquidity objectives, and agreed to continue in senior management positions with Capstar.