Link here to Rigzone.
Frontier Energy Group LLC, a closely held company that builds and
maintains oil wells, said it acquired rival Canary Wellhead Equipment
Inc. Monday in a move that underscores the ongoing consolidation in the
U.S. oilfield-services sector.
Terms of the deal were not disclosed, but Frontier Energy CEO Dan
Eberhart said his Denver-based company is paying less than $100 million
for privately held Canary, which had headquarters in Oklahoma City,
Okla. Canary offers wellhead services and manufactures parts used in oil
production.
Advances in drilling methods have allowed energy companies to unlock a
wealth of crude oil and natural gas from shale and other deeply buried
rock formations once considered too costly to develop. The drilling boom
has led to new oilfield-services companies cropping up in places where
shale reserves are plentiful, such as Texas, North Dakota and the
Midwest.
Denver-based Frontier Energy has been a consolidator, spending $100
million over the past three years prior to the Canary deal to acquire
eight small service companies.
Go to the link to learn more about the details.
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