Sanjel initiates restructuring process, signs sale agreements

Sanjel Corp., a specialized, privately owned global energy service company, has signed two agreements for its sale to two separate North American pressure pumping providers.

Sanjel has signed a definitive agreement for the sale of its Canadian fracturing, coiled tubing and cementing assets to Calgary, Alberta-based STEP Energy Services Ltd., an ARC Financial Corp. sponsored company. STEP is a privately owned, technically focused, oilfield services company providing specialized coiled tubing and associated pressure pumping equipment and fracturing services. The sale will add 165,000 pressure pumping horsepower to STEP’s current fracturing fleet of 115,000 horsepower. The cementing assets will be operated separately under the leadership of Shane Hooker. Closing of the transaction is expected to occur in May 2016.

Concurrently, Sanjel has signed a definitive agreement for the sale of its United States fracturing, coiled tubing and cementing assets to Denver, CO-based Liberty Oilfield Services. With the sale, Liberty will double its fracture stimulation capacity to approximately 500,000 HHP and expand its geographic footprint and service offerings. The acquisition gives Liberty entry into the Permian and Eagle Ford, complementing Liberty's existing operations in the Williston, DJ, and Powder River basins. The Transaction is expected to close in the second half of Q2 following the completion of customary approvals.

Sanjel has initiated a court-supervised restructuring process to facilitate the closing of the two sale agreements. The company obtained an initial order from the Court of Queen's Bench of Alberta under the Companies' Creditors Arrangement Act (CCAA). The Court appointed PricewaterhouseCoopers Inc. as Monitor of Sanjel during this process. The company has also applied for recognition of the Initial Order under Chapter 15 of the US Bankruptcy Code.

The company anticipates operating on an uninterrupted basis throughout the CCAA process until closing of the transactions. The company has arranged interim financing for this purpose with its existing twelve-member banking syndicate. 


Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...