HUNTINGTON -- Energy Services Acquisition Corp. reported Thursday plans for two acquisitions in West Virginia -- S.T. Pipeline Inc. of Clendenin and GasSearch Drilling Services Corp. of Parkersburg.

S.T. Pipeline services the oil and gas industry primarily through the installation and repairs of pipelines. Under the agreement, S.T. Pipeline shareholders can receive up to $15,200 per share or $19 million in the aggregate, subject to a reduction to reflect the book value of certain assets and a reduction of $3 million that will be paid to shareholders on a deferred basis, according to a news release.

Energy Services also agreed to a three-year employment agreement with James E. Shafer and a non-compete agreement with Pauletta Sue Shafer, the owners of S.T. Pipeline. James Shafer said the merger would provide his company with a strong capital position that would enable S.T. Pipeline to continue to grow.

Based in Huntington, Energy Services is a publicly traded, special purpose acquisition company formed to invest in or acquire companies in the energy services industry.

"This is truly an exciting time to be in the energy services business, and we feel very fortunate to have Jim and Sue Shafer bring their great company into the Energy Services family," said Marshall Reynolds, the chairman and CEO of Energy Services, in the news release.

GasSearch Drilling's primary business is the drilling and servicing of oil and gas wells. While GasSearch is a recently formed company that began business in 2007, its management team has a long track record in the oil and gas industry, according to a news release.

GDS Corp.'s management team will remain with the company and President and CEO Denny Harton will continue to serve in that capacity. Under the agreement, Harton also will become an executive vice president of Energy Services and a member of Energy Services Board of Directors.

"I believe this transaction provides the rare opportunity for our company to become part of a larger, more agile and diverse organization that will enable us to provide more efficient services to our customers and have the support of a strong infrastructure that encourages growth," Harton said.

The total acquisition cost to Energy Services is $23.5 million, payable in a combination of cash and stock.

The contemplated transaction is subject to shareholder approval, along with certain regulatory approvals including the filing of a proxy statement with the Securities and Exchange Commission.

"I couldn't be more pleased than I am to have the opportunity to bring such a high caliber company and management team into the Energy Services Family. Denny Harton has an outstanding history and reputation in his businesses," Reynolds said. "We look forward with great anticipation to the closing of the transaction with this fine company."

Reynolds also is chairman and CEO of Champion Industries, owner of The Herald-Dispatch.

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