Weekly OFS Newsletter – JANUARY 22, 2018
Mergers and Acquisitions
- MATRRIX Energy Technologies Inc. (TSXV:MXX) announced the acquisition of Saskatchewan based D2 Drilling Inc. for $3.53 million. D2 owns one heavy telescopic double drilling rig in the Weyburn/Estevan area of southeast Saskatchewan. The acquisition will be completed through the issuance of 6.67 million common shares at a deemed price of $0.45 per share, as well as a cash payment of $530,000 equivalent to D2’s working capital at the time of closing. With the acquisition, MATRRIX currently has seven modern telescopic double drilling rigs.
- Trican Well Service Ltd. priced its upsized secondary offering by Keane Investor Holdings LLC. of 13.3 million shares at $18.25 per share, with an additional option to purchase 2 million additional shares. Trican will be receiving net proceeds of USD $23.9 million from the offering and an additional USD $3.3 million if the options are exercised. The net proceeds will be used to reduce Trican’s outstanding debt and to continue its normal course issuer bid.
- Oil storage services at the Kinder Morgan Canada Inc. (TSX:KML) and Keyera Corp. (TSX:KEY) JV Base Line Terminal in Alberta has commenced. As of January 15th, 2018, four out of the twelve crude oil storage tanks are in operations, with the remaining tanks to be phased into service throughout 2018. The terminal has a capacity of 4.8 million barrels of crude oil, with the potential to further increase capacity by 1.8 million barrels in the future.
- The National Energy Board (NEB) announced a three to five weeks process to resolve potential future permit disputes between Trans Mountain Pipeline ULC and provincial and municipal authorities. The process is designed to provide further certainty around the available regulatory tools to resolve disagreements between the parties, with the objective of minimizing any further delay risks.
- TransCanada Corp. (TSX:TRP) secured approximately 500,000 bbls/d in firm, 20 year commitments during its Keystone XL pipeline open season. The USD $8 billion pipeline received pledges from various parties, including the Alberta government’s crown corporation, the Alberta Petroleum Marketing Commission of 50,000 bbls/d for 20 years.
- Calgary based Wayfinder Corp. opened its second unit train frac sand storage and transloading facility in Gold Creek, Alberta. The facility is connected to the Canadian National Railway Company’s (TSX:CNR) locomotive network and serves to meet the demand for frac sand primarily in the Montney formation. The facility will have the capacity to hold more than 45,000 tonnes of sand upon completion.