EGPI Firecreek Inks LOI to Acquire Oil Service Co
EGPI Firecreek has signed a Letter of Intent to acquire an Oil Service company that currently services the Northwest Louisiana and East Texas regions of the United States.
The Company has been in business for over 40 years as a production and service company utilizing its own pulling units, swab rigs and other industry equipment to provide oil field services. The company has revenues of approximately $2,400,000 per year with positive net income, and estimated assets of approximately $6 million.
The Company presently provides oil field services to several oil and gas company operators including one with several hundred wells in the Caddo Pine Island field, Haynesville field and Desoto Parish known as the Spyder field.
The Company currently employees approximately 25 people including a heavy duty mechanic, electrician and rig operators, and has the capacity to service wells up to 6,000 foot depth with available servicing equipment on hand.
Negotiations for the acquisition have been ongoing, and recently The Company's Board of Directors has given the go-ahead to move forward to negotiate and structure the terms for a Definitive Agreement.
Dennis Alexander, EGPI's CEO, stated, "This proposed acquisition would exponentially enhance our growth in the Oil and Gas Sector by having equipment, experienced personnel and a history within the industry. We look forward towards collectively focusing on a structure and terms that will enhance and benefit both operations. With this acquisition we have targeted several additional related entities that we are currently actively pursuing as a result of this relationship."
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