Frontier Oilfield Services, Inc. Completes Exchange Offering
DALLAS, Oct. 8, 2012 /PRNewswire/ -- Frontier Oilfield Services, Inc. (OTCQB : FOSI) announces that it has successfully completed an exchange offering to acquire the remaining 49% of the outstanding membership interests of Frontier Income and Growth, LLC that it did not previously own. The successful exchange completes the acquisition of 100% of the ownership of Frontier Income and Growth, LLC and its operating subsidiary Trinity Disposal and Trucking, LLC.
All of the 101 interest holders of Frontier Income and Growth, LLC agreed to exchange their 1122 units for 1,870,000 shares of restricted common stock in Frontier Oilfield Services.
Tim P Burroughs, President of Frontier Oilfield Services, Inc. stated, "We welcome the former unit holders of Frontier Income and Growth as our shareholders, and the completion of this acquisition consolidates our holdings in East Texas. Frontier will continue to identify, evaluate and acquire compatible saltwater disposal operations in the Haynesville, Barnett, Eagle Ford and Permian Basin formations as we grow our company and implement our business strategy."
ABOUT TRINITY DISPOSAL and TRUCKING, LLC
TDT's gross revenues for 2012 are expected to be approximately $10,000,000. TDT currently operates 8 permitted commercial disposal wells and 25 disposal tank trucks and trailers in a service area primarily located in East Texas and Northwestern Louisiana. There are approximately 4,000 producing oil and gas wells within a 15 mile radius of TDT's disposal sites in Marion, Harrison and Panola Counties. The Trinity operational headquarters is located in Marshall, Texas and its administrative headquarters are located at Frontier's corporate offices in Dallas, Texas.
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 is focused on an essential but highly fragmented energy services sector. Frontier plans to continue rapid expansion and substantial growth in the near future. At this time, Frontier and its subsidiaries operate approximately 100 disposal tank trucks and trailers, 30 frac rental tanks, and 13 disposal wells with estimated annualized revenue of $50 million.
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 risk 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.