Calfrac Well Services Ltd. and Mission Well Services, LLC have entered into a definitive agreement (the "Agreement") pursuant to which Calfrac has agreed to acquire all of the operating assets of Mission (the "Assets"), a privately-held hydraulic fracturing and coiled tubing services provider focused in the Eagle Ford shale region of Texas(the "Acquisition"). Under the terms of the Agreement, Calfrac's total purchase price will be approximately US$147 million, which includes approximately US$7 million of working capital associated with the ongoing operations of the business.

The Acquisition will preempt a portion of Calfrac's 2014 capital expenditure program, which is expected to include similar equipment. The purchase price is approximately equal to the net book value of the Assets and represents a discount to replacement value. Calfrac will acquire approximately 157,500 of conventional pumping horsepower, along with high-rate blenders, related sand-handling and auxiliary equipment, three deep capacity coiled tubing units with related fluid and nitrogen pumping units and a modern district facility in San Antonio, Texas.

Tags: Calfrac Well Services Ltd.