Source Energy Services Ltd (TSX: SHLE) has closed its acquisition of Sand Products Wisconsin LLC for US$45 million. Located near Blair, Wisconsin, Sand Products’ assets include a Northern White frac sand mine, processing facility and unit train capable load-out facility. Source, a Calgary-based proppant sourcing and oilfield logistics company, said the buy will “significantly increase” its frac sand production volumes. Source, backed by Canadian private equity firm TriWest Capital Partners since 2013, went public this month, raising $175 million. It planned to use part of the IPO’s proceeds for the acquisition.
Source Energy Services Ltd. completes acquisition of Sand Products
CALGARY, ALBERTA–(Marketwired – April 18, 2017) –
Source Energy Services Ltd. (TSX:SHLE) (the “Company” or “Source”) is pleased to announce the closing of its previously announced acquisition of Sand Products Wisconsin LLC (“Sand Products”) for total proceeds of USD$45,000,000.
Sand Products’ assets include a Northern White frac sand mine, processing facility and unit train capable load-out facility located near Blair, Wisconsin.
“This acquisition allows Source to significantly increase our Northern White frac sand production volumes,” commented Brad Thomson, CEO of the Company. “With a production capacity of 1.3 million metric tonnes per year, the Sand Products acquisition helps Source meet the growing demand for Northern White frac sand in the Western Canadian Sedimentary Basin with efficient, low cost production.”
ABOUT SOURCE ENERGY SERVICES
Source is a fully integrated producer, supplier and distributer of high-quality Northern White frac sand primarily to the Western Canadian Sedimentary Basin. Source provides its customers with a full end-to-end solution through its Wisconsin mine assets, processing facilities, unit train capable rail assets, strategically located terminal network and “last mile” logistics capabilities. Source’s full service approach allows customers to rely on its logistics capabilities to increase reliability of supply and to ensure the timely delivery of their growing frac sand requirements. In addition to its transload terminal network and in-basin storage capabilities, Source has also developed Sahara, a proprietary wellsite mobile sand storage and handling system.
Source Energy Services Ltd.
Chief Executive Officer
(403) 262-1312 (ext. 225)
Photo courtesy of Source Energy Sources Ltd