Header

Natural gas services provider Provident Energy Ltd. says it has agreed to take a two-thirds equity interest in a Saskatchewan based oilfield hauling company for $20 million.

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.

Source: Oilweek 

DiscoverWeyburn.com is Weyburn's only source for community news and information such as weather and classifieds.

Login