NEW YORK, April 10, 2018 (GLOBE NEWSWIRE) -- Via OTC PR Wire – Sixty Six Oilfield Services, Inc. (OTCBB:SSOF) announces that it has signed a Letter of Intent to Acquire Five Star Rig and Supply, Inc., an Oklahoma based drilling rig and supply parts company for stock and cash. The principal stock holders of Five Star will receive a controlling block of the Company’s preferred stock. The Company plans to raise up to $20 Million in debt and expansion capital to acquire Five Star. The majority of this raise will be used to finance the purchase and resale of several drilling rigs. The Company and Five Star have been working together on this joint project which is expected to be completed during the second and third quarters of this year.
Dave T. Ho, the Company’s Chief Executive Officer, said “This acquisition of Five Star is an exciting development for Sixty Six. This transaction allows us to continue our focused growth within the drilling sector and will also enhance the bottom line for the overall benefit of the stockholders. Five Star’s overall revenue for 2017 was $6.7MM with net profits of $2.07MM. By combining the strengths of both companies we will be looking to effectively double the Company’s 2017 sales. We look forward to quickly completing the acquisition of Five Star in the coming weeks.”
Five Star Rig and Supply was founded in 1983 and is a complete oilfield supply and equipment company. Five Star was started as a local oil field supply company, but has evolved over the years to become a manufacturer of oilfield equipment such as centrifugal pumps, wireline machines, bug blowers, and FC-1000 and other 1000 HP mud pumps. Five Star also engages in rebuilds of oil field drilling equipment including air hoists, compressors, Kelly spinners and pipe spinners. Jason Clayton, President of Five Star and the majority owner said “At Five Star Rig and Supply it is our mission to supply and manufacture products that are dependable, and be competitive in the oilfield industry. We have been looking to expand our footprint in the drilling supply market and by merging with Sixty Six we can now expand from a base of strength. The entry into the public market will enable more opportunities for us in global distribution and give us access to the capital markets.” More on Five Star can be found at www.fivestarrig.com
Finally, in accordance with the Letter of Intent with Five Star and the pending acquisition by the Company, Kenneth D. Bland has stepped down as the Chairman of the Company effective March 27th. The resignation has been filed with the State of Nevada. A new chairman will be nominated by the Board in due course pending completion of the planned acquisition and elected by the majority shareholders. Mr. Bland has also transferred all 3 million preferred shares in SSOF to CEO Dave Ho for the purpose of completing the acquisition of Five Star Rig and Supply, Inc.
About the Company
Sixty Six Oilfield Services, Inc. is located on Lexington Ave in Manhattan, NY and is a Nevada registered holding company. The Company is actively pursuing a strategy of acquiring a diverse range of energy, strategic marketing and technology businesses for its portfolio. The Company is continuing to build its oilfield services business and will maintain its offices in Oklahoma City.
Learn more at www.sixtysixoilfield.com.
SAFE HARBOR INFORMATION
This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act) The Company is not eligible to rely on the safe harbor provided by Section 21E(c) of the Exchange Act because it is not subject to filing periodic reports under Sections 13 or 15(d) of the Exchange Act.
For more information, contact:
Sixty Six Oilfield Services, Inc.
450 Lexington Ave
New York, NY 10017
Source:Sixty Six Oilfield Services, Inc.