Business
Sixty Six Oilfield Services, Inc. Announces Letter of Intent to Acquire Local Rig Supply and Fabrication Company
Sixty Six Oilfield Services, Inc. Announces Letter of Intent to Acquire Local Rig Supply and Fabrication Company.
About this update from Sixty Six Oilfield Services, Inc.
[{"type":"text","content":"\n\n NEW YORK, April 10, 2018 (GLOBE NEWSWIRE) -- Via OTC PR Wire – Sixty Six Oilfield Services, Inc. (OTCBB:SSOF) announces that it has signed a Letter of Intent to Acquire Five Star Rig and Supply, Inc., an Oklahoma based drilling rig and supply parts company for stock and cash.  The principal stock holders of Five Star will receive a controlling block of the Company’s preferred stock. The Company plans to raise up to $20 Million in debt and expansion capital to acquire Five Star. The majority of this raise will be used to finance the purchase and resale of several drilling rigs.  The Company and Five Star have been working together on this joint project which is expected to be completed during the second and third quarters of this year.\n Dave T. Ho, the Company’s Chief Executive Officer, said “This acquisition of Five Star is an exciting development for Sixty Six. This transaction allows us to continue our focused growth within the drilling sector and will also enhance the bottom line for the overall benefit of the stockholders.  Five Star’s overall revenue for 2017 was $6.7MM with net profits of $2.07MM. By combining the strengths of both companies we will be looking to effectively double the Company’s 2017 sales. We look forward to quickly completing the acquisition of Five Star in the coming weeks.” Five Star Rig and Supply was founded in 1983 and is a complete oilfield supply and equipment company. Five Star was started as a local oil field supply company, but has evolved over the years to become a manufacturer of oilfield equipment such as centrifugal pumps, wireline machines, bug blowers, and FC-1000 and other 1000 HP mud pumps. Five Star also engages in rebuilds of oil field drilling equipment including air hoists, compressors, Kelly spinners and pipe spinners. Jason Clayton, President of Five Star and the majority owner said “At Five Star Rig and Supply it is our mission to supply and manufacture products that are dependable, and be competitive in the oilfield industry.  We have been looking to expand our footprint in the drilling supply market and by merging with Sixty Six we can now expand from a base of strength. The entry into the public market will enable more opportunities for us in global distribution and give us access to the capita...