Business
Source Energy Services Enters into a Transaction with Canadian Silica Industries to Assume Operation of its Peace River Frac Sand Facility
(TheNewswire) Calgary, Alberta – TheNewswire - (April 12, ...
About this update from Source Energy Services Ltd.
[{"type":"text","content":"Source Energy Services Enters into a Transaction with Canadian Silica Industries to Assume Operation of its Peace River Frac Sand Facility\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n Calgary, Alberta –\n \n \n TheNewswire -\n \n \n (April 12, 2022)\n \n \n (\n \n \n TSX:SHLE\n \n \n )\n \n \n Source Energy Services Ltd.\n \n \n (“\n \n \n Source\n \n \n ” or the\n“\n \n \n Company\n \n \n ”) is pleased to announce that it has entered into\nagreements (the “\n \n \n Transaction\n \n \n ”) with Canadian Silica\nIndustries Inc. and Contractor’s Leasing Corp. (collectively,\n“\n \n \n CSI\n \n \n ”) which will result in Source assuming all operations,\ndistribution, and sale of domestic frac sand from CSI’s Peace River\nfacility.\n \n \n \n Transaction Highlights\n \n \n \n \n adds 400,000 metric tonnes of domestic frac sand production capability\nto Source’s existing portfolio of Northern White frac sand and other\nproducts, broadening our offering to our customer base;\n \n \n \n \n consolidates CSI’s production facility with Source’s adjacent\n3,600 acres of mineral resource explorations rights in Peace River\nresulting in production efficiencies and extending the life of the\ncontiguous resource;\n \n \n \n \n provides Source access to domestic sand production that is both\ngeographically closest to the Montney and not rail dependent;\n \n \n \n \n integrates Peace River frac sand into Source’s leading distribution\nnetwork resulting in low-cost production with significant logistical\nadvantages; and\n \n \n \n \n generates significant financial upside with minimal capital costs and\nbalance sheet impacts while incorporating a flexible lease\nstructure.\n \n \n \n \n “This transaction with CSI adds critical domestic sand supply for\nSource,” said Scott Melbourn, Chief Executive Officer of Source.\n“\n \n I\n \n t ensures that we have the most reliable\nsupply of both Northern White and domestic sand, enhancing our ability\nto effectively and efficiently service our clients.”\n \n \n Advisors\n \n \n Alcedio Capital Inc. acted as financial advisor and Fasken Martineau\nDuMoulin LLP acted as legal advisor to CSI. Norton Rose Fulbright\nCanada LLP acted as legal advisor to Source.\n \n \n...