AEG electric drill orders surge in new orders
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Electric drill orders are surging and will rise as a new stock surge, with demand outpacing supply, a U.S. electric drill operator said.
Electric drill orders for March were up by 13% in the first quarter from a year earlier, with new orders for new units expected to reach more than 2 million by the end of the month, North Dakota-based Drillers United said in a Tuesday filing.
Demand has risen, with orders for electric drill units expected in March reaching nearly 3 million, the company said.
Demand for electric drills is increasing because of a $2.7 billion funding round announced by the U.K. energy company BG Group, the second-largest oil and gas investor in the U., which is seeking to expand its drilling operations in the North Sea.
AEG will spend $1.3 billion to buy up to 7 billion shares of its common stock in the new round, said Erik Suter, vice president of finance and acquisitions for Drillers U. The deal, which is expected to close by the second quarter, will allow the company to continue expanding drilling in the basin, which will create jobs in the process.
“It is a significant investment and will have a significant impact on the future growth and success of the company,” Suter said in the filing.
Electric drill orders are surging and will rise as a new stock surge, with demand outpacing supply, a U.S. electric…