Page 12 - NorthAmOil Week 40 2021

NorthAmOil NEWS IN BRIEF NorthAmOil

John Schmitz, chairman, president
and CEO, stated: “We are very excited to
execute on another accretive consolidation
opportunity for Select. This acquisition
significantly expands our produced water
infrastructure footprint and further increases
the Company’s revenue weighting towards
production-related services and solutions.
This acquisition is a continuation of our
strategic effort to improve and bolster our
base business, advance our technology and
diversification efforts, and execute on strategic
lines, including a 12” steel pipeline – capacity “We are extremely pleased to establish a consolidation opportunities.
up to 20,000 mcfgd and comprises 5,000+ joint venture with ExxonMobil to maximise “With this transaction, we will be adding
acres leasehold, and 89 company-owned wells the potential of Enercoast,” said Jeff Ballard, more than 550,000 barrels per day of
with substantial Woodford shale development President and CEO of Sentinel. “Sentinel permitted daily disposal capacity in in Texas,
opportunities. Closing is expected in October looks forward to the opportunity to serve New Mexico, Oklahoma and North Dakota,
pending final due diligence. ExxonMobil and other shippers in the with approximately 50% of this capacity in
“Natural gas midstream assets are true Houston market.” the Permian Basin. When combined with
gems in the current environment. Acquisition Enercoast began serving shippers as a our existing assets, this brings our company-
of the Wagoner Pipeline also opens numerous common-carrier pipeline on October 1, 2021. wide permitted daily disposal capacity to
opportunities for stranded gas that hasn’t Enercoast’s tariffs are available on Sentinel’s approximately 2 million barrels per day.”
been able to capitalise on current commodity website. SELECT ENERGY SERVICES, October 04, 2021
prices.” Brian Guinn, CEO of United Energy. SENTINEL MIDSTREAM TEXAS, October 04,
UNITED ENERGY, October 05, 2021 2021
SERVICES
Sentinel Midstream Select Energy Services Patterson-UTI completes

announces new joint closes acquisition of Agua acquisition of Pioneer
venture serving the Houston Libre Midstream and other Energy Services

energy market water-related assets from Patterson-UTI Energy today announced

Sentinel Midstream Texas today announced Basic Energy Services that it has closed its previously announced
the formation of a joint venture with acquisition of Pioneer Energy Services. Total
ExxonMobil Pipeline that owns crude Select Energy Services, a leading provider of consideration for the acquisition included the
oil pipelines and related transportation sustainable water and chemical solutions to issuance of approximately 26.3mn shares of
infrastructure in the Houston area. The joint the US unconventional oil and gas industry, Patterson-UTI common stock and payment
venture, Enercoast Midstream, provides the today announced that, effective October of $30mn of cash, which based on the most
critical last-mile link for Permian, Gulf of 1, 2021, it has successfully closed on the recent closing price for Patterson-UTI of
Mexico, and other barrels in the Houston acquisition of substantially all of the assets of $9.44 valued the transaction at approximately
crude oil market. Agua Libre Midstream and certain water- $278mn, including the retirement of all
For the joint venture, ExxonMobil will related assets and operations of Basic Energy Pioneer Energy Services’ debt.
contribute two existing crude oil pipelines Services and assumed liabilities in connection In connection with the closing, Pioneer
into Enercoast: a 16-inch pipeline originating therewith, in each case pursuant to the terms Energy Services’ senior notes were repaid with
at Webster Terminal with delivery points at of the stalking horse asset purchase agreement cash and a portion of the shares of Patterson-
ExxonMobil’s Baytown Refinery and Seabrook previously entered into with Basic and Agua UTI common stock issued in the acquisition.
export terminal and a 20-inch crude pipeline Libre and following approval by the US Pioneer shareholders will receive 1.8692
with access to Moore Road station. Sentinel Bankruptcy Court for the Southern District shares of Patterson-UTI common stock for
contributed cash for a majority equity position of Texas on September 23, 2021 pursuant to each share of Pioneer common stock.
and will be the operator for the joint venture. Section 363 of the US Bankruptcy Code. As Andy Hendricks, Patterson-UTI’s chief
As operator, Sentinel brings an consideration for the acquisition, Select has executive officer, commented: “I would like
experienced, results-oriented management issued 902,593 shares of Class A common to welcome the employees, customers, and
team with a proven track record of stock and paid $14.5mn in cash to Basic to shareholders of Pioneer Energy Services to
maximising value while maintaining its close the transaction, subject to standard post- Patterson-UTI. Pioneer’s employees share
core values of safe, reliable operations and closing adjustments. a similar commitment to safety and service
environmental stewardship. Sentinel will Based in Fort Worth, TX, Agua Libre is a quality as our own, and we are excited to have
undertake efforts to commercialise capacity leading provider of water midstream, logistics them join our team.”
on Enercoast’s system while pursuing and production services to the oil and gas PATTERSON-UTI ENERGY, October 04, 2021
opportunities to grow its operating footprint industry, including operations in Texas, New
by building or acquiring new pipelines. Mexico, Oklahoma and North Dakota.

P12 www. NEWSBASE .com Week 40 07•October•2021