CALGARY, April 4, 2016 /PRNewswire/ - Sanjel Corporation ("the Company" or "Sanjel") is pleased to announce the signing of two transformative 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 STEP Energy Services Ltd. ("STEP"), 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.
Concurrently, Sanjel is also pleased to announce that it has signed a definitive agreement for the sale of its United States fracturing, coiled tubing and cementing assets to Liberty Oilfield Services ("Liberty"). Liberty is an innovative oilfield service company providing specialized stimulation services to optimize well production. Liberty currently operates in the Williston, DJ and Powder River basins and is headquartered in Denver, CO.
Sanjel also announced today that it has initiated a Court-supervised restructuring process to facilitate the closing of the two sale agreements. The Company today obtained an initial order (the "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. Closing of the sale transactions are anticipated over the next 30 days.
Over the past 34 years, Sanjel has been providing premium pressure pumping services to a wide variety of oil and gas companies in North America. Its reputation for best in class service quality and Health, Safety and Environmental performance will continue with its new owners in Canada and the United States.
PricewaterhouseCoopers Inc. will make information relevant to the restructuring process available on their website at www.pwc.com/ca/sanjel.
SOURCE Sanjel Corporation