Erickson Air-Crane Incorporated ("Erickson") (EAC) has signed a one-year deal with Pacific Rubiales Energy ("Pacific"), an oil and gas company. Per the agreement, the former will be responsible for providing heavy lift helicopter services to the latter. Depending on the completed total flight hours, the contract value will be in the range of $11 million to $14 million.
In support of Pacific's oil and gas exploration program, Erickson will provide its services in Lease Block 138, which is approximately 60 kilometers from Pucallpa, Peru. Per the deal, the company will help Pacific in shifting the drill rig components and supplies between exploratory sites in the secluded area of east-central Peru. Also, Erickson will provide one S64-F model aircrane helicopter, with pilots, full field maintenance support crews, parts and components.
Erickson Air-Crane specializes in the operation and manufacture of the Erickson S-64 Aircrane. This Air-Crane is a versatile and powerful heavy-lift helicopter with capacity to lift up to 25,000 pounds of weight. It is the only commercial heavy-lift helicopter that has a rear load-facing cockpit with a complete aircraft control for precision lift and load placement capabilities. Also, it is the only commercial aircraft built specifically as a flying crane without a fuselage for internal loads. Erickson Air-Crane also sells Aircranes and related components to government and commercial customers.
In October last year, Erickson had announced that it will purchase Sun Bird Aircraft ("Sun Bird") and associated spare parts inventory and accessories from San Diego Gas & Electric Company ("SDG&E"), a subsidiary of Sempra Energy (SRE). As a result, Sun Bird will be added to the Erickson's fleet, thereby allowing it to fulfill the growing demand of heavy-lift aerial services.
Apart from generating revenue, this contract will enable Erickson to geographically diversify its fleet, specifically in the emerging South American oil and gas market. The company presently retains a short-term Zacks Rank #1 (Strong Buy).