STEP Energy Services Ltd, a portfolio company of Canadian private equity firm ARC Financial Corp, has agreed to acquire certain assets of Sanjel Corp, a Calgary-based energy service company. No financial terms were disclosed for the deal, which will see STEP add Sanjel’s Canadian pressure pumping, coiled tubing and cementing assets to its own services offerings. The acquisition will be facilitated through a court-monitored process and is expected to close in May. STEP, a Calgary-based oilfield service specialist, was founded in 2011 with a $75 million investment from ARC Financial. Last year, the company bought GASFRAC Energy Services Inc.
STEP Energy Services Announces Strategic Transaction
CALGARY, April 4, 2016 /CNW/ – STEP Energy Services Ltd. (“STEP” or “the Corporation”), an ARC Financial Corp. sponsored company, is pleased to announce that the Corporation has entered into a definitive agreement to acquire the Canadian pressure pumping, coiled tubing and cementing assets of Sanjel Corporation (“Sanjel”). The acquisition will add 165,000 pressure pumping horsepower to STEP’s current fracturing fleet of 115,000 horsepower. The cementing assets will be operated separately under the leadership of Shane Hooker. The transaction will be facilitated through a court-monitored process. Closing of the transaction is expected to occur in May 2016.
“The quality of the assets and the highly regarded reputation that the Sanjel team has maintained with their clients is consistent with STEP’s strategy of operating modern fit for purpose equipment and delivering an exceptional client experience. The expanded fracturing fleet, together with our coiled tubing and pumping services offering, will position STEP as the largest private completion services company in Western Canada. This scale will allow us to service projects of any scope across the WCSB”, says Regan Davis, president and chief executive officer.
Headquartered in Calgary, Alberta, STEP Energy Services is a privately owned, technically focused, oilfield service company providing specialized coil tubing and pressure pumping services to the deep, horizontal well market in Western Canada and the Eagle Ford shale in south Texas.
For further information: STEP Energy Services Ltd., Christine Wilson, Manager, Marketing and Communications, firstname.lastname@example.org, 587.349.6753
Photo courtesy of Sanjel Corp