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Press
Release Flint Energy Services Acquires Cantu Lease Calgary, November 27, 2002, 8:30am ET Flint Energy Services Ltd. (“Flint”) is pleased to announce that it has successfully completed the acquisition of Cantu Lease, Inc. (“Cantu”), of Mission, Texas. The transaction is valued at US$17.5 million, with consideration comprised of $US11.5 million in cash, a US$3.0 million Seller’s Note repayable over two years, 176,470 common shares of Flint stock, and warrants to acquire up to an additional 42,016 common shares of Flint under certain circumstances. The cash portion of the consideration will be funded from Flint’s existing credit facilities. Cantu’s revenues for the year ended December 31, 2001, were US$18 million, and earnings before interest, taxes, depreciation and amortization (EBITDA) were US$5 million for the same period. Headquartered in Mission, Texas, USA, Cantu is an oilfield services company that serves the petroleum and energy industries, providing installation, operation and maintenance services for pipelines, gas processing plants, power plants and oil and gas production facilities. Cantu’s operations will be integrated into Flint’s Production Services business unit. Brian Butlin, President and CEO of Flint stated, “The acquisition of Cantu will provide Flint an excellent opportunity to expand into one of the fastest growing oil and gas production regions in the United States. Located near the Texas and Mexico border, the acquisition of Cantu will offer Flint the opportunity to expand its Production Services operations in this region, as well as provide an operational base from which to potentially participate in the development of the Burgos basin in Mexico”. Subsequent to the acquisition of Cantu, Flint’s operations will cover and area from Norman Wells, Northwest Territories to Mission, Texas, and will span western centers, 34 of which are in Canada and 12 of which are in the United States. Flint also owns fabrication and modularization facilities in Sherwood Park, Cold Lake and Bonnyville, Alberta, a structural steel manufacturing facility in Elk Point, Alberta, and two fabrication facilities in Casper, Wyoming. Butlin added, “As a consolidator of midstream oilfield services, this acquisition reflects Flint’s on-going intention to grow through geographic expansion and the ability to deliver a full scope of midstream production services to its customer”. Flint is a publicly traded company listed on the Toronto Stock Exchange under the symbol “FES”. Flint provides midstream production services to large oil and gas producers across North America. These services are offered through three divisions, which are Transportation Services, Production Services and Facility Infrastructure. Transportation Services provides small to medium inch diameter pipeline construction and installation. Production Services provides day-to-day field facility maintenance services, as well as electrical, instrumentation, mechanical, safety, pressure and vacuum, and fluid hauling services. Facility Infrastructure provides large capital project planning, fabrication, assembly, modularization and field installation. Max Dillard, Managing Director of The Dillard Anderson Group, said, “We were extremely pleased to represent the owners of Cantu Lease in this transaction. The strategic fit seems to be excellent. More importantly, the transaction will allow the shareholders of Cantu to successfully pursue their personal objectives”. |