Three Star Trucking Ltd. provides transport services for crude oil
producers in the lucrative Bakken Formation area, which runs under
Saskatchewan, Manitoba, North Dakota and Montana.
"The acquisition of this two-thirds interest in Three Star expands Provident´s logistics footprint in the Bakken-area, one of the most exciting resource plays in North America, and s a strong partnership with a highly regarded and growing player in the industry" said Provident´s president and chief utive officer.
Three Star has a fleet of approximately 170 tractors and 160 trailers.
Under terms of the agreement, Provident will pay $8 million in cash, 945,000 Provident shares and approximately $4 million in assumed debt and capital.
Provident has the right to purchase the remaining minority interest in Three Star after three years from the closing date, which is expected to be some time around Oct. 1.
Calgary-based Provident owns and operates natural gas assets, including extraction, storage and transportation.