BlackWatch Energy Acquires Elite Oilfied Services
BlackWatch Energy Services Trust has acquired Elite Oilfield Rentals based in Valleyview Alberta.
Elite provides oilfield equipment leasing and rental services and has an inventory of storage tanks, flare tanks, rig mats and various support equipment to service its broad customer base in the Valleyview - Grande Prairie region of Alberta. During each of the past two fiscal years Elite has experienced annual revenue and EBITDA growth in excess of 100%. During the 12 month period ending April 30th 2006, Elite's EBITDA was approximately $3.1 million. The Elite acquisition is accretive to the Trust's cash flow on a per unit basis.
The purchase was funded with $5.2 million in cash, the assumption of $232 thousand in debt and the issuance of 575,269 units of the Trust. Existing credit facilities were used to fund the cash portion of the transaction. The Trust units are subject to escrow, to be released over a two year period from the closing date.
"Elite is respected for its customer service and widely known in the Valleyview area", said Earl Connors, President and CEO of BlackWatch. "Elite complements BlackWatch's suite of services and provides opportunities for growth and expansion in a key region of Alberta's oil and gas industry." Mr. Wes Bradley and Mr. Rod Perron, being the former owner-operators of Elite, have joined BlackWatch and will continue to manage and grow BlackWatch's newly-formed rental and leasing division.
BlackWatch Energy Services Trust is a growth-oriented income trust that provides a range of services to its customers operating in the Western Canadian Sedimentary Basin including drilling, wireline services, rig transportation and hauling, coil tubing well servicing, production services and oilfield equipment leasing and rental services. The units of BlackWatch trade on the Toronto Stock Exchange under the symbol "BWT.UN"