Flotek Inds (FTK)

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Flotek, Gulf Energy LLC to Jointly Build Oilfield Chemistry Plant in Oman

7:55 AM ET 3/14/13 | Dow Jones
By Melodie Warner

Flotek Industries Inc. (FTK) intends to partner with the Oman-based oil and gas concern Gulf Energy LLC to build an oilfield chemistry production facility and create a research and development organization focused on the Middle East and North Africa.

Flotek, a supplier of drilling and production products, said it will own 60% of two new Omani-registered limited liability companies. The first is a chemical production company that will construct a production facility near the Omani port of Sohar. The second is a research and development laboratory that will focus on applying Flotek's oilfield chemistries to drilling and production in the Middle East and North Africa.

Flotek and Gulf Energy will jointly market the products and services, along with Flotek's international marketing partner, Basin Supply Co.

Flotek estimated construction costs for the facility at up to $10 million.

The company also expects to locate the research and development facility in or near Muscat, the commercial center of Oman and headquarters of Gulf Energy.

"This partnership with Gulf Energy, which has been several months in process, is an important and significant step in establishing Flotek's leadership position in global oilfield chemistry," said Chairman and Chief Executive John Chisholm.

Separately, Flowtek said H. Richard Walton will become its permanent chief financial officer.

Mr. Walton was named interim financial chief in February to replace Chief Accounting Officer Johnna Kokenge, who left to pursue other professional interests.

Mr. Walton retired from KPMG LLP after 20 years as an audit partner and had been a consultant to Flotek since 2010.

Shares closed Wednesday at $14.41 and were inactive premarket. The stock is up 18% so far this year.

Write to Melodie Warner at [e-mail].

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March 14, 2013 07:55 ET (11:55 GMT)

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