Calgary oilfield services company Ideal Completions Group LLC has agreed to acquire the Canadian and U.S. flowback and production testing assets of Cathedral Energy Services Ltd. In a separate statement, Cathedral said the deal has a total cash consideration of $17.8 million. The acquisition, expected to close in January, will be funded by Ideal management and an affiliate of Edge Natural Resources, a U.S. energy private equity firm. Led by President Rutger Niers, Ideal said it has access to additional capital to expand its flowback business in North America.
Ideal Completion Services to Acquire Flowback and Production Testing Assets from Cathedral Energy Services
CALGARY, ALBERTA–(Marketwired – Dec 19, 2016) – Ideal Completions Group LLC (“Ideal” or the “Company”) is pleased to announce that it has entered into a definitive purchase and sale agreement with Cathedral Energy Services Ltd. (“Cathedral”) for the acquisition of all of Cathedral’s flowback and production testing assets in Canada and the United States. The acquisition will be fully funded by management and ENR Partners LP, which is an affiliate of Edge Natural Resources LLC (“Edge”), a Dallas-based private equity firm focused on small-cap investments in the North American energy industry. Ideal has access to additional capital to expand its flowback business through acquisition and/or the build-out of new equipment.
Ideal’s management team has extensive experience in the flowback and production testing business through their prior management experience with Pure Energy Services and Cathedral Energy Services. The management team includes Brad Gabel (Executive Chairman), Rutger Niers (President), Richard Defreitas (Vice-President) and Scott Marshall (Vice-President, Operations). Rutger Niers, President of Ideal, said, “We are excited to acquire the high quality flowback asset base of Cathedral and look forward to welcoming the Cathedral staff to the Ideal team. We will be solely focused on the flowback and production testing business. With the Cathedral asset base and our considerable management and operational experience, Ideal is strategically well positioned to expand and grow its business to become an industry leader of flowback and production testing services in North America with a strong emphasis on safety and customer relations.”
Ideal is a private oilfield services company formed to acquire and operate the flowback and production testing assets from Cathedral.
Ideal Completions Group LLC Brad Gabel Executive Chairman (403) 267-0099 Ideal Completions Group LLC Rutger Niers President (403) 267-0099
Photo courtesy of Cathedral Energy Services Ltd