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updated 14:30, Thu December 13, 2007

Newpark Says Sale of Environmental Services Division to Close Later Than Expected

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THE WOODLANDS, Texas (AP) -- Newpark Resources Inc., which provides drilling fluids and waste treatment for the petroleum industry, said Wednesday it expects the sale of its U.S. Environmental Services business to close later than it had expected.

The company said the sale of the unit to Trinity TLM Acquisitions LLC will now likely close in the company's fiscal 2008 first quarter rather than in the fourth quarter of 2007.

Newpark said Trinity has decided to conduct additional environmental due diligence for the deal. The Texas company agreed to sell the division in October for $81.5 million, plus up to $8 million in contingent payments.

Newpark shares rose 5 cents to $5.49 in electronic after-hours trading. During regular trading, the shares fell 2 cents to close at $5.44.

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