Copyright of the Daily Oil Bulletin 2017
Sanjel Assets To Be Acquired By STEP Energy Services
Privately-held STEP Energy Services Ltd., an ARC Financial Corp. sponsored company, says it has entered into a definitive agreement to acquire the Canadian pressure pumping, coiled tubing and cementing assets of Sanjel Corporation.
The acquisition will add 165,000 pressure pumping horsepower to STEP’s current fracturing fleet of 115,000 horsepower. The cementing assets will be operated separately under the leadership of Shane Hooker.
The transaction will be facilitated through a court-monitored process and it is expected to close in May 2016.
“The quality of the assets and the highly regarded reputation that the Sanjel team has maintained with their clients is consistent with STEP’s strategy of operating modern fit-for-purpose equipment and delivering an exceptional client experience,” Regan Davis, STEP’s president and chief executive officer, said in a news release.
“The expanded fracturing fleet, together with our coiled tubing and pumping services offering, will position STEP as the largest private completion services company in Western Canada. This scale will allow us to service projects of any scope across the WCSB.”
Headquartered in Calgary, STEP Energy Services is a privately owned, technically focused, oilfield service company providing specialized coil tubing and pressure pumping services to the deep, horizontal well market in Western Canada and the Eagle Ford shale in south Texas.
Concurrently, Sanjel announced that it has signed a definitive agreement for the sale of its United States fracturing, coiled tubing and cementing assets to Liberty Oilfield Services.
Liberty currently operates in the Williston, DJ and Powder River basins and is headquartered in Denver, CO.
Sanjel also said today that it has initiated a Court-supervised restructuring process to facilitate the closing of the two sale agreements.
The company today obtained an initial order from the Court of Queen’s Bench of Alberta under the Companies' Creditors Arrangement Act (CCAA). The court appointed PricewaterhouseCoopers Inc. as monitor of Sanjel during this process. The company has also applied for recognition of the initial order under Chapter 15 of the US Bankruptcy Code.
Sanjel, which has provided premium pumping services over the past 34 years, anticipates operating on an uninterrupted basis throughout the CCAA process until closing of the transactions. The Company has arranged interim financing for this purpose with its existing 12-member banking syndicate. Closing of the sale transactions are anticipated over the next 30 days.