Weekly OFS Newsletter
News Items Ending March 12, 2018
Mergers and Acquisitions
- Step Energy Services Ltd. (TSX:STEP) announced the USD $275 million acquisition of Oklahoma based Tucker Energy Services Holdings Inc., a fracturing and completion solutions provider. The acquisition provides Step with a strategic entry into the US fracturing market in key high growth basins, including the SCOOP/STACK and Woodford plays. The acquisition includes four fracturing spreads representing 192,500 horsepower, two coiled tubing spreads and 15 wireline units.
- Step Energy Services Ltd. (TSX:STEP) announced a follow-on equity offering of $50 million in subscription receipts. Step will issue 5.38 million subscription receipts to be purchased by its underwriters on a bought deal basis at an offering price of $9.30 each. The proceeds from the equity offering will be used to fund its acquisition of Tucker Energy Services Holdings Inc.
- The BC government is planning to file a constitutional reference case regarding its rights to restrict bitumen volumes in the Trans Mountain Pipeline expansion to protect the BC coast, while proceeding with consultation around four bitumen spill safeguards. Following the announcement, the Alberta government suspended its retaliatory ban on BC wine.
- Gibson Energy Inc. (TSX:GEI) announced the sanction of the $50 million Viking Pipeline Project. The project is aligned with Gibson’s strategy of leveraging existing storage, optimization capabilities and access to egress pipelines at its Hardisty Terminal. The project will extend the reach of the existing Provost Pipeline to support several regional developments. The 120 km pipeline will have an initial capacity of 13,300 bbl/d with the potential to be expanded to 25,000 bbl/d, and is expected to be in operation in Q1 2019.
- The Alberta Energy Regulator (AER) approved TransCanada Corp.’s (TSX:TRP) White Spruce pipeline project with conditions, which consists of the construction of two crude oil pipelines. The first pipeline would be 508 mm in diameter and approximately 50 m in length, whereas the second pipeline would be 323.9 mm in diameter and 71.5 km in length. The project will deliver synthetic crude oil from Canadian Natural Resources Ltd.’s (TSX:CNQ) Horizon processing plant to the MacKay Terminal for market delivery.
- Suncor Energy Inc. (TSX:SU) filed an application to the National Energy Board (NEB) for the approval of its Lewis oilsands project. The project is located about 25 km northeast of Fort McMurray and will use in situ technologies for the extraction of bitumen. The project is expected to product 160,000 bbls/d of bitumen from four central processing facilities for 25 to 40 years, with construction scheduled to begin in 2024 and first oil in 2027.