Canadian energy private equity firm Resource Merchant Capital (RMC) has supplied convertible debenture financing to Snubco Group Inc, a Nisku, Alberta-based provider of pressure control services to the oil and gas industry. No financial terms were disclosed. Founded in 1996, Snubco provides snubbing, well servicing, well control and freeze-hot tapping services to customers in Canada, Europe, the Middle East and North Africa. John Taskinen, Snubco’s president and majority shareholder, said the funds raised will support his company’s growth initiatives, including the manufacture of a thermal heavy oil rod-stripping unit.
Resource Merchant Capital Partners with Snubco Group, Secures Equipment Financing for Expansion
Calgary, Alberta, April 11, 2018 — Resource Merchant Capital (RMC) is pleased to announce that it has partnered with Snubco Group, a leading Alberta-based provider of pressure control services to the oil and gas industry. RMC has provided Snubco with growth capital via a convertible debenture financing.
Founded in 1996, Snubco has strategically grown its fleet of equipment services to provide snubbing, well servicing, well control and freeze-hot tapping services. The company has a reputation as one of the world’s leading snubbing experts and is a preferred vendor for oil and gas producers in Canada, Europe, and the Middle East and North Africa.
As Snubco’s partner, RMC is not only providing capital, but is also providing strategic and financial guidance to Snubco as it expands its business. In conjunction with the convertible debenture financing, RMC also negotiated and secured new equipment financing and a new credit facility with major lending institutions that will help fund Snubco’s growing operations.
Proceeds from the financings were used by Snubco to manufacture a thermal heavy oil rod-stripping unit (THOR) and provide additional working capital in support of a new contract with one of the world’s largest oil and gas companies. This innovative technology enables Snubco to perform well maintenance without cooling down the wells, which in turn, provides significant financial and environmental benefits to customers.
“Snubco benefits from a highly experienced and motivated management team, industry-leading technologies and exceptional expertise,” said Kevin Rowand, Managing Director at RMC. “We’re delighted to be working with John Taskinen and the Snubco team to leverage these strengths and realize the significant opportunities facing this company.”
Said John Taskinen, Snubco’s Group President and majority shareholder, “RMC’s partnership and financial and strategic expertise have been instrumental in accelerating our business growth. We’ve been able to expand our operational capabilities with innovative technologies that provide cost efficiencies and environmental benefits to our customers at a critical time in our industry.”
About Snubco Group
Based in Nisku, AB, Snubco Group is a leading provider of snubbing, well servicing, well control and freeze-hot tapping service to clients in Canada, Europe, and the Middle East/North Africa. Snubco’s highly motivated, experienced crews operate the most innovative snubbing equipment available in the industry today – much of it built and developed by Snubco.
About Resource Merchant Capital (RMC)
Resource Merchant Capital (www.resourcemc.com) is an Alberta-based, private capital firm focused predominantly on oil and gas product and service companies. RMC partners with technology-focused companies to build world class businesses that drive significant wealth for founders, entrepreneurs, leaders and shareholders.
For more information, contact:
Kevin Rowand, Managing Director, Resource Merchant Capital: 780 721-8783
Photo courtesy of Snubco Group Inc