Infinity Unit Draws Interest from Potential Buyers
Infinity Energy Resources, Inc. said Wednesday that it has received a number of indications of interest to purchase its wholly owned oilfield services subsidiary, Consolidated Oil Well Services, Inc. As a result, it has engaged Capital One Southcoast, Inc., a New Orleans-based energy investment banking boutique and a subsidiary of Capital One Financial Corp., to assist in the evaluation of these and any additional indications for Consolidated.
Consolidated, which was founded in 1956 and acquired by Infinity in 1994, provides pressure pumping services--including cementing, acidizing, fracturing, and water hauling--to customers in the Mid-Continent Region and in Wyoming. Consolidated generated revenue of approximately $9 million and $30 million, during the three and twelve months ended June 30, 2006, respectively. Management recently provided 2006 revised revenue guidance of $34 million, an increase of 58% from the $21.6 million of 2005 revenue.
No formal decisions have been made and no agreements have been reached at this time with respect to any indications from any of the interested parties. There can be no assurances that a sale transaction will be finalized or that any transaction will occur, nor what the terms or the timing of any such transaction may be. <> “We are pleased to announce the receipt of a number of indications of interest for our oilfield services subsidiary and the engagement of Capital One Southcoast to assist us in evaluating these and any additional indications,” said James A. Tuell, Infinity’s president and CEO. “Our success in the Barnett Shale play in the Fort Worth Basin of Texas, and our other exploration and production prospects and projects, together with continued strong demand for oilfield services, especially pressure pumping services, have made the timing optimal, in our view, to consider proposals for the potential purchase of Consolidated. If any transaction occurs, the net proceeds will be used to repay debt and for general corporate purposes, including the funding of our exploration and production capital expenditures. If no transaction occurs, we would be pleased to continue to own, operate, and grow this highly successful operation into the foreseeable future.”
Infinity Energy Resources, Inc., through its wholly-owned subsidiaries Infinity Oil and Gas of Texas, Inc. and Infinity Oil & Gas of Wyoming, Inc., is an independent energy company engaged in the exploration, development and production of natural gas and oil and the operation and acquisition of natural gas and oil properties. The operations of Infinity Oil and Gas of Texas are focused on its drilling program in the Fort Worth Basin of Texas. The operations of Infinity Oil & Gas of Wyoming are focused on the Wamsutter Arch Pipeline Field in southwest Wyoming and the Sand Wash Basin in northwest Colorado. The company provides oilfield services through its wholly owned subsidiary, Consolidated Oil Well Services, Inc., with operations principally focused in the Mid-Continent region and the Powder River and Big Horn Basins in northern Wyoming. The Company also has a 1.4 million-acre oil and gas concession offshore Nicaragua in the Caribbean Sea.
- Infinity Energy Resources Names Technical Team for Offshore Nicaragua (Jun 23)
- Nicaragua Inks New Offshore Exploration Deal (Mar 06)
- Infinity Gets Approval for Offshore Nicaraguan E&D Contracts (Jul 07)
Company: Consolidated Oil Well Services, Inc. more info
- Infinity Announces Definitive Agreement for Consolidated Sale (Dec 04)
- Infinity Unit Draws Interest from Potential Buyers (Jul 26)