Frontier Oilfield Services announces another acquisition
DALLAS, July 10, 2012 /PRNewswire/ -- Frontier Oilfield Services, Inc (OTCQB: FOSI) announces its intention to acquire Chico Coffman Tank Trucks, Inc ("Coffman"), including its wholly owned subsidiary, Coffman Disposal, LLC for the sum of $17,408,348.00 subject to certain negative and positive adjustments based upon the amount, at the time of closing, of Coffman's indebtedness, seller's expenses and EBITA adjustments.
Coffman is a salt water disposal company with its primary base of operations located in North Texas with its trade and service area being in the Barnett Shale oil and gas field located in North Central Texas.
Coffman had audited 2011 revenues on $40.5 million with an EBITA of $3,263,929. Coffman's assets are currently valued on its financials at $24 million and consist of accounts receivables, rolling stock (trucks and trailers), six permitted disposal wells and the headquarters real property.
Tim P Burroughs, President of Frontier Oilfield Services, stated, "We are pleased that Mr. JD Coffman will remain as President of Coffman Tank Trucks, Inc. under a five year employment agreement and assist us in the implementation of our future acquisition strategy."
ABOUT FRONTIER OILFIELD SERVICES, INC
Frontier Oilfield Services, Inc.'s primary business focus on wastewater recovery and disposal has been selected due to the recurring nature of the revenues, the relatively high margins and the strong barriers to entry by potential competitors because of the limited supply of state permitted commercial disposal wells. In addition, as a result of breakthroughs in recent technology (the process by which shale oil and gas is extracted), exploration & production companies are faced with increasing volumes of, and thus challenges with regard to the disposal of produced fluids and saltwater. Frontier's acquisition strategy in this highly fragmented, decentralized and essential sector of the energy services market, positions Frontier for potentially rapid expansion and substantial growth in the future.
FORWARD LOOKING STATEMENTS
Statements contained in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those discussed in "Risk Factors" in the Company's Forms 10-K, Forms 10-Q, and other filings with the Securities and Exchange Commission. Such risks factors include, but are not limited to, a limited operating history with no earnings; reliance on the Company's management team; the ability to successfully implement the Company's business plan; the ability to continue as a going concern; the ability to fund the Company's business and acquisition strategy; difficulty in managing operations of acquired businesses; and limited trading in the public market for the Company's common stock. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
(For more information contact Dick O'Donnell, EVP at Frontier Oilfield Services, Inc (972) 243-2610)
SOURCE Frontier Oilfield Services, Inc.