Business
Calfrac Announces Closing of Acquisition, Contract Award and Operational Update
CALGARY , Oct. 3, 2013 /CNW/ - Calfrac Well Services Ltd. ("Calfrac") (TSX-CFW) is pleas...
About this update from Calfrac Well Services Ltd.
[{"type":"text","content":"\n\n\nCALGARY, Oct. 3, 2013 /CNW/ - Calfrac Well Services Ltd. (\"Calfrac\") (TSX-CFW) is pleased to announce that it has completed the previously announced\n acquisition of all of the operating assets of Mission Well Services,\n LLC (\"Mission\"), a privately-held hydraulic fracturing and coiled\n tubing services provider focused in the Eagle Ford shale region of\n Texas (the \"Mission Asset Acquisition\").  Under the terms of the asset\n purchase agreement in connection with the Mission Asset Acquisition,\n the total purchase price was approximately US$147 million, which\n included certain working capital associated with the ongoing operations\n of the business.  The purchase price is subject to certain post-closing\n adjustments related to inventory verifications and equipment\n inspections.\n\n\nWith the closing of the Mission Asset Acquisition, Calfrac now has\n approximately 1,182,500 of conventional pumping horsepower, placing it\n among the world's largest and most capable fracturing companies. \n Calfrac intends to transfer a portion of the Mission assets to other\n active operating areas in the United States, and believes that its\n geographic diversification will allow it the flexibility to redeploy\n other assets as opportunities arise.\n\n\nDoug Ramsay, the Chief Executive Officer of Calfrac, stated that \"We are\n very pleased that the acquisition of the operating assets of Mission\n has successfully closed.  This acquisition provides us with a platform\n to enter the Eagle Ford shale region and to assess opportunities in\n other basins in Texas, while adding high quality fracturing and coiled\n tubing equipment to other Calfrac operating areas.\"\n\n\nPeters & Co. Limited and RBC Capital Markets LLC acted as joint\n financial advisors to Calfrac in connection with the acquisition.\n\n\nContract Award\n\n\nCalfrac is also pleased to announce that it has entered into a three\n year contract with minimum monthly commitments and on standard terms\n and conditions for the local market with respect to the provision of\n pressure pumping services to YPF S.A. in Argentina. Calfrac expects\n unconventional oil and gas activity will continue to develop\n significantly in Argentina in the future.  As a result, Calfrac views\n this contract with the largest operator in Argentina as a major\n miles...