Tulsa-based Parker Drilling Company with worldwide drillingoperations, and Superior Energy Services, which provides servicesin the Gulf of Mexico, have announced a definitive agreement tomerge in a transaction valued at approximately $168 million.

The agreement calls for each share of Superior common stock tobe exchanged for 0.9 shares of Parker stock. Parker also willassume $25 million in Superior debt. The deal is expected to closein early 1999 and is subject to approval by shareholders of bothcompanies and the customary regulatory approvals.

As a result of the transaction, Parker will issue approximately26 million new shares to current Superior shareholders, and willthen have approximately 103 million shares outstanding after theclosing of the transaction.

“Our merger with Superior Energy Services continues our longterm corporate strategy to expand this high-margin side of ourbusiness,” said Robert L. Parker Jr., Parker Drilling’s presidentand chief executive officer. “Superior’s wide geographic presenceand excellent reputation with Gulf of Mexico operators, will allowParker to expand our premium rental tool business in deep offshoremarkets and internationally.”

“Obviously, this transaction rewards our shareholders with asubstantial premium,” said Terence Hall, Superior’s chairman. “Butmore importantly, it will allow our existing business lines to growby accessing Parker’s well-established international platform.”

Superior, headquartered in Harvey, LA, provides oil toolrentals, well plug and abandonment services, and other specializedproducts and services to oil companies operating in the Gulf ofMexico and onshore.

Parker is an international provider of offshore and on-landdrilling services, currently operating in 14 countries.

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