Millennium Stimulation Services has acquired ENFRAC Inc., the first major acquisition in the company’s history.
The purchase price for ENFRAC was up to $12,000,000, satisfied by the issuance by Millennium of 8,000,000 common shares at a deemed price of $1.50/share; 4,000,000 of which were issued upon closing, and the balance may be issued at a future date.
ENFRAC is an energized or foam frac completion technology company that brings to Millennium a highly differentiating completion technology through the use of liquefied natural gas (LNG). The team at ENFRAC has developed a streamlined and efficient method of pumping LNG in energized or foam frac applications. Hydrocarbon fracturing has long been known to create above average oil and gas reserves recovery. This is especially true when there is a liquids rich gaseous combination creating a multiphase flow regime in the formation. LNG brings these significant advantages into play without the hazards of handling propane and other heavier than air natural gas liquids (NGL’s).
Millennium also announced that Grant Nevison, founder of ENFRAC will be joining the company as an Executive Vice President. Nevison will provide leadership in advancing Millennium’s LNG service initiatives. Paul Crilly will be joining Millennium’s board of directors.
Press Release, August 15, 2014; Image: Millennium Stimulation Services