Weekly OFS Newsletter – JANUARY 8, 2018
Mergers and Acquisitions
- Cordy Oilfield Services Inc. (TSXV:CKK) closed the acquisition of the assets and business of Hornet Hydrovac (1094956 Alberta Ltd.), previously announced on December 11, 2017. The acquisition of Hornet, a hydrovac trucking services provider increases Cordy’s hydrovac fleet by 33%, and is part of its strategy to diversify its client base to focus more on municipal and industrial markets.
- Weatherford International plc (NYSE:WFT) sold its US pressure pumping and pump-down perforating assets to a subsidiary of Schlumberger Ltd. (NYSE:SLB) for USD $430 million in cash. Schlumberger will acquire the division’s facilities and supplier and customer contracts, as well as 100 associated employees. The proceeds of the transaction will be used by Weatherford to reduce its outstanding indebtedness
- Vertex Resource Group Ltd. (TSXV:VTX) acquired Saskatchewan based Sonic Oilfield Services, an environmental services provider of pressure trucks, fluid hauling, chemical and KCL products for $4.5 million. The acquisition adds 60 pieces of rolling stock to Vertex’s fleet, as well as the acquisition of a KCL mixing facility in Kindersley, SK. 2.35 million common shares were issued at $1 per share, and the remaining balance was paid in cash to complete the transaction.
- The Trump administration in the US proposed to open almost all US offshore oil and gas drilling to boost US energy production. The administration’s draft of the National Outer Continental Shelf Oil and Gas Leasing Program from 2019 to 2024 would allow over 90% of the outer continental shelf’s total acreage available for leasing to drilling companies. The implementation of this program would reverse the previous administration’s measures to restrict 94% of the outer continental shelf from drilling activities.