Capital Reserve Canada Ltd., Edmonton, Alberta, (OTCBB: CRSVF) plans to acquire Two Hills, Alberta-based United Fabrication & Welding Ltd. for C$805,000 in shares, C$200,000 in cash and C$125,000 in assumed debt in a total deal valued at C$1.13 million.
United Fabrication’s main assets include a facility in Two Hills that provides metal fabrication work for the oil and gas industry, including the Alberta oil-sands projects. United Fabrication will become a division of Capital Reserve will assist Capital Reserve subsidiary Behral Canada in manufacturing of SBOP line of blowout preventers.
Henry Neufeld will remain president of United Fabrication.
He says, “I am pleased to join Don Getty and his team at Capital Reserve in building a regional powerhouse servicing the oil and gas sector. I believe that United’s cost-structure within Capital Reserve will provide it with a foundation for future success in providing welding and fabrication services to the oil and gas industry.”
Capital Reserve president and chief executive Steve Claussen says, “The acquisition is a strong strategic fit, allowing CRC to enhance its position in the oil and gas service industry, and quickly accelerate revenue growth.”
Recommended Reading
US Shale Basins Boast $54/bbl Average Breakeven Price
2023-03-24 - The average full-cycle breakeven for U.S. shale basins is approximately $54/bbl, while the average for public E&Ps and private operators is $53/bbl and $58/bbl, respectively, Wells Fargo said, citing Rystad Energy data.
Dawson Geophysical Purchases Seismic Firm Breckenridge Geophysical
2023-03-24 - Wilks Brothers-controlled Dawson will purchase Breckenridge Geophysical — owned by Wilks Brothers — in an all-stock deal worth more than $10 million.
Oil is Sticking Around, Rystad and WoodMac Say
2023-03-24 - Rystad Energy and Wood Mackenzie executives said during an AAPG-Energy Opportunities event in Mexico City that oil will still be needed through 2050 and that the energy transition will take time.
Investors Waiting Out AMLO’s Tenure, Eyeing Future Mexican Leader
2023-03-24 - Energy investors in Mexico continue to wait out the tenure of President Andrés Manuel López Obrador, which comes to an end next, with an eye on a new leader and potential policy changes.
Wave of New LNG Export Plants Threatens to Knock Gas Prices
2023-03-14 - "When you hear people say 'there is no way we will overbuild this,' that's when things get over-built," said Alan Armstrong, CEO of U.S. gas pipeline operator Williams Cos., which supplies gas to LNG exporters.