PORT HURON, Mich., Nov. 3 /PRNewswire/ -- Continuing its focus on
expansion and growth into unregulated arenas which are strongly related to its
core competencies, SEMCO Energy, Inc. (Nasdaq: SMGS), has acquired Oilfield
Materials Consultants, Inc., a consulting and quality assurance/quality
control company serving the natural gas, oil transmission, and
exploration/production industry for 905,000 shares of SEMCO Energy stock and
the assumption of approximately $1.1 million in debt. Oilfield Materials
Consultants employs 220 people and for the 9-month period ended September 30,
1998 had gross revenue (unaudited) of $12,445,000. The transaction will be
accounted for as a pooling of interests. Oilfield Materials Consultants will
operate as a subsidiary of SEMCO Energy Ventures, Inc.
William L. Johnson, Chairman, President and Chief Executive Officer of
SEMCO Energy, Inc., made the announcement today. "The acquisition of Oilfield
Materials Consultants is a natural fit with SEMCO Energy's current businesses
as well as future ventures in the regulated and nonregulated natural gas
industry and is consistent with our strategic plan."
Oilfield Materials Consultants has its head office in Houston. The
company provides highly qualified and experienced personnel to the natural
gas, petroleum, and petrochemical industries. The company monitors and
inspects service companies, contractors, manufacturers and fabricators to
ensure adherence to customer and/or industry standards and specifications in
the manufacture, fabrication and maintenance of coatings, tubular goods and
engineered equipment. Oilfield Materials Consultant's expertise includes
quality control and quality assurance verification services for on- and off-
shore operations. Among its clients are numerous large national and
international producers and pipeline companies.
Oilfield Materials Consultants is SEMCO Energy's third acquisition this
year. In March SEMCO acquired Hotflame Gas, Inc., the largest supplier of
propane gas in northern Michigan and northeast Wisconsin. In May, it acquired
King Energy & Construction, a small Knoxville, Tennessee-based natural gas,
water and sewer infrastructure construction company.
"Our strategy is to roll these and other engineering and construction
operations up into a much larger organization that allows SEMCO Energy to
offer turn-key engineering, design and construction support to a national, if
not international, customer base. We believe this strategy offers exceptional
growth potential," Johnson said.
SEMCO Energy, Inc., an energy-focused holding company, has three first-
tier subsidiaries: SEMCO Energy Ventures, Inc., an unregulated division which
acquires and operates businesses involved in natural gas construction, energy
engineering and propane, SEMCO Energy Services, Inc., an unregulated division
which markets natural gas in parts of the United States and Canada; and SEMCO
Energy Gas Company, a natural gas distributor serving 240,000 customers in 24
counties in Michigan.
SOURCE SEMCO Energy, Inc.
CONTACT: Edric R. Mason, Jr. of SEMCO, 810-989-4104, or fax, 810-989-4098