Wellco Completes Acquisition of Altex
Wellco Energy Services Inc. is pleased to announce that it has successfully closed its previously announced Marketing and Purchase Agreement with Altex Oilfield Equipment Ltd., a private Calgary based manufacturer of proprietary flare tank systems.
The patented Altex Flare Tank System serves to minimize the environmental impact of drilling for oil and natural gas and create a safer work site by degassing and safely storing waste drilling fluids in an integrated holding tank. The Altex technology is in use by a growing number of major drilling and exploration companies due to its cost and environmental advantages over conventional open flare pits.
Under the terms of the Agreement the Company has acquired Altex's complete inventory of flare tank systems. The fleet, which will number 21 units by the end of the current month, is being provided to Wellco's clientele on a rental basis. Wellco has also been granted the exclusive right to market Altex's proprietary technology throughout North America for an indefinite term. Consideration for the transaction consisted of a cash payment in the amount of $560,000, subject to certain adjustments subsequent to closing.
This transaction, together with the Company's fiscal 2000 purchase of Total Environmental Services and its pending acquisition of Eco Tech Water Systems Ltd., evidence Wellco management's conviction that environmental services will continue to play an expanding role in natural resource development activities both in Canada and abroad.