In December of 1994, Blue Ridge purchased an oil well cementing business located in Columbia, Kentucky. This business had been in operation 12 years, enjoys an excellent reputation in the area and provides an essential service to the drilling, completion and operation of oil and gas wells in the Kentucky / Tennessee region.
In addition, in December 1996, Blue Ridge bought the assets of its primary competitor in the area. As a result of this purchase, Blue Ridge acquired six more trucks. The cement business presently consists of ten trucks with associated mixers, tanks and equipment which service wells throughout Kentucky and northern Tennessee. A new operating and bulk storage facility was constructed in 1997, in Columbia, Kentucky.
Also in December of 1994, Blue Ridge continued its integration philosophy with the purchase of an oil well acidizing business located in Columbia, Kentucky. Not only does this operation have all of the same excellent general qualities as the cement business, but Blue Ridge is able to derive the additional benefits of using common facilities and employees to operate both businesses.
The primary purpose of this business is to provide hydrochloric acid under pressure for treating well formations to enhance their productive capability. As a well is completed and placed into production, it may be necessary to stimulate the movement of the oil or gas within the geological formation by treating it with acid. At times, it may also be necessary to improve the porosity of the formation by "fracturing" it with acid pumped in under pressure. Additionally, during the productive life of a well, acid treatments are often required to clean out the well and restimulate the formation for improved production.
The acid business presently consists of two trucks with a certified tanks and associated pumps and equipment. Blue Ridge also maintains a plant in Columbia for maintenance of the equipment along with base storage for the acid and associated chemicals. The cement business shares these facilities as well as associated office staff and facilities. As with the cement business, the working staff is always on call twenty-four hours per day, seven days per week.
These acquisitions have returned over 100% of the initial investment as well as producing a steady source of income.