BAUER Group seals joint venture in oil and gas drilling business with Schlumberger

Ad hoc announcement in accordance with Section 15 of the German Securities Trading Act (WpHG)

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BAUER Maschinen GmbH, an affiliated company of BAUER AG, finalized negotiations for a joint venture with Schlumberger, the world's leading supplier of technology, integrated project management and information solutions for customers in the oil and gas industry.

It was agreed that Schlumberger would contribute 49 % through a cash capital increase to each of two companies of the BAUER Group, BAUER Deep Drilling GmbH with its registered office in Schrobenhausen, Germany, and BAUER Manufacturing LLC with its registered office in Conroe, USA.

In the joint venture, large drilling rigs for use with in the oil, gas and geothermal sectors will be developed and manufactured for Schlumberger and third parties. Two drilling rigs that are already under manufacture will be delivered to Schlumberger at the start of 2016. Further machinery orders of Schlumberger for the upcoming year shall be finalized in the next few weeks. Both companies anticipate that the planned joint venture could soon achieve revenues of more than one hundred million euros and open up great opportunities for the future.