Wildcat Services, L.P. was founded in 1999 in Cypress, Texas, by Mr. Wayne Prejean. The core business of Wildcat is a patented rental tool – an automatic driller – which is installed on oil and gas drilling rigs. The tool assists the operator of the drilling rig to maximize rate of penetration through precise monitoring of weight on bit, changes in mud pump pressure and other diagnostics. The tool is used in conjunction with downhole mud motors for both vertical and horizontal drilling.
Mr. Prejean was known to DAG through mutual prior association in the directional drilling business. DAG and Mr. Prejean analyzed the participants in the oil service market and eventually agreed that the most synergistic candidate for purchase was the M-D Totco subsidiary of Varco, L.P. (NYSE: VRC). Varco was approached initially with a strategy of attempting to consummate a transaction at a premium valuation. If this valuation could not be obtained, the second part of the strategy was to approach other strategic players in the drilling instrumentation market.
Varco quickly recognized the value of Wildcat, and the synergistic fit with M-D Totco, and delivered a premium valuation (price was not disclosed). Mr. Prejean accepted a senior management position with M-D Totco and the other members of the Wildcat management team remain in their current positions.