Sixty Six Oilfield Services, Inc. Announces New Corporate Structure as Rig Deal Nears Completion
August 29 2018 - 8:00AM
InvestorsHub NewsWire
Sixty Six Oilfield Services, Inc. Announces New
Corporate Structure as Rig Deal Nears
Completion
New
York, NY -- August 29, 2018 -- InvestorsHub NewsWire -- Sixty Six
Oilfield Services, Inc. (OTCBB:
SSOF) announces Jason Clayton as the new President and CEO of
Sixty Six Oilfield Services, effective immediately. In pursuing the
Company’s stated goals, Mr. Clayton announced, “It’s my pleasure
and honor to lead SSOF into a new era. We are immediately
proceeding with plans to partner with a rig debt financing company
to fund the purchase of the eleven (11) identified oil drilling
rigs for a total purchase price of $40.00mm. This action represents
an incredible opportunity to jumpstart the next phase of growth and
expansion.” The initial round of rig funding is for $26.25mm for
the purchase of six (6) 2000 HP Rigs with a second round of rig
funding for $13.750mm for the purchase of five (5) 1500 HP Rigs.
The Company expects to sell each of the 1500 HP Rigs within 6
months of purchase, each at a base case of $8.5mm as well as to
sell each of the 2000 HP Rigs within 6 months of purchase, each at
a base case of $13.75mm. The Company predicts that the base case
scenario of the cumulative transactions will total $125mm with a
net profit of $63.4mm before financing cost. The Company will
self-fund the total refurbishment cost as needed per rig buyer. All
oil rigs have already been appraised. These deals will be fully
structured with interest, fees and compensating balances with
funding to be placed in escrow with UCC
liens
Mr.
Clayton will also remain the President of the subsidiary Five Star
Rig and Supply. Mr. Clayton has been with Five Star since 1993 and
has worked in and managed all areas of the company including and
most importantly customer growth and sales. In 2016, he became
President of Five Star overseeing all day to day operations.
In
leaving the post of CEO, Mr. Dave Ho stated, “It’s been a pleasure
to serve the investment community and employees of SSOF over the
last seven months. I plan to continue to work with and support Mr.
Clayton in a new capacity to help advance the Company’s strategic
goals that were formulated at the beginning of the year. The
Company’s immediate future is in great hands with Jason. He brings
a wealth of knowledge and impeccable credentials to lead the
company and expand into the rig refurbishment business. This
incredible opportunity will supercharge growth and propel SSOF to
new heights of success.”
During
this time of transition, Mr. Clayton is supported by longtime key
staff members including Mr. Jimmy Joslin who has been with Five
Star Rig and Supply since its inception in 1984. Mr. Joslin
has worked in all areas of the company from shipping and receiving
to warehouse management, manufacturing, sales, inventory control
and administration. He is responsible for orders processing,
inventory control, delivery, logistics and supervision of custom
projects such as rig and rig equipment refurbishment, testing and
certification as well as other general day to day duties. Mr. Jim
Frazier, currently EVP, will remain with the company in the role of
CFO as the company prepares for further growth and
expansion.
In other
updates, the Company is planning to engage with
MarketNewsWire, www.networknewswire.com to assist in providing the best corporate
communication with the market and our shareholders. The corporate
address for SSOF is being updated to new company headquarters at
8009 S-I35 Service Road, Oklahoma City, OK 73149. Over the next few
weeks, the Company will be updating the corporate web site to
reflect all these new changes.
About the Company
Sixty
Six Oilfield Services is a third-generation heavy oil field
equipment company founded in Oklahoma in 1959. Subsequent to the
period ending June 30, 2018, the Company completed an acquisition
of Fluid End Sales doing business as Five Star Rig and Supply which
was established as a family owned business in 1984. The Company
will continue to focus on supplying the oil industry with custom
drilling rigs, heavy-weight drill pipe, drill collars, pup joints,
pony collars, handling tools, tubing, casing, blow-out preventers,
engines, compressors and other select equipment to customers
worldwide through its facilities in Oklahoma City, Germany, and
Dubai. The Company’s services include the sale of new equipment,
sale of refurbished and certified used equipment, as well as rental
of oilfield equipment. The Company is currently expanding into the
oil drilling rig acquisition, refurbishment, and resale
business.
Learn
more at www.sixtysixoilfield.com.
SAFE HARBOR
INFORMATION
This
press release may contain forward-looking information within the
meaning of Section 21E
of the
Securities Exchange Act of 1934, as amended (the Exchange Act) The
Company is not eligible to rely on the safe harbor provided by
Section 21E(c) of the Exchange Act because it is not subject to
filing periodic reports under Sections 13 or 15(d) of the Exchange
Act.
For more
information, contact:
Sixty
Six Oilfield Services, Inc.
8009
S-135 Service Road
Oklahoma
City, OK 73149
Attention: Shareholder
Services
(929)
383-0821
PR@sixtysixoilfield.com
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