New West Energy Services Inc. (TSX VENTURE:NWE) announce that it has entered into an agreement to acquire the operating assets of Porterco Welding Ltd. for an aggregate cash purchase price of $1.4 million subject to certain customary closing adjustments.
The operating assets of Porterco include all equipment used in the hauling and handling of drilling waste solids, rental equipment, vehicles, inventory and customer lists. The transaction is scheduled to close on August 24, 2012.
Porterco is an oilfield services company operating in Slave Lake, Alberta. The services offered by Porterco include drilling waste solids hauling, excavating, equipment rentals and fabrication. Porterco has fixed assets of approximately $750,000 and at its year ended April 30, 2012 had revenue of $2.5 million and EBITDA of approximately $530,000 (all figures unaudited).
Mr. Gerry Kerkhoff, President and Chief Executive Officer of the Corporation, explained, "Porterco compliments the existing services offered by our subsidiary BearStone Environmental Solutions Inc. and allows us to offer complete drilling waste fluids and solids hauling and disposal in an active area for both companies. We believe Porterco has excellent growth potential in the solids hauling and equipment rental business and we have plans to expand the asset base this year. The acquisition allows BearStone to operate locally out of Slave Lake, Alberta and service the oilsands and other active plays in the area."
Porterco will operate under the name Porterco Oilfield Services Inc., as a wholly owned subsidiary of the Corporation. Mr. Cory Porter, founding principal of Porterco, will remain in the capacity of General Manager as well as Area Manager for BearStone.
The Corporation has further agreed to issue to Mr. Porter up to 2,000,000 common shares of the Corporation at a price of $0.06 per common share for gross proceeds of up to $120,000, such purchase price to be payable in cash by Mr. Porter.
All transactions referred to in this press release are subject to the approval of the TSX Venture Exchange.
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