SSOF NEWS $125MILLION deal " Sixty Six Oilfield Se
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Posted On: 08/29/2018 9:07:04 AM
SSOF NEWS $125MILLION deal " Sixty Six Oilfield Services, Inc. Announces New Corporate Structure as Rig Deal Nears Completion
New York, NY -- August 29, 2018 -- InvestorsHub NewsWire -- Sixty Six Oilfield Services, Inc. (OTCBB: SSOF) announces Jason Clayton as the new President and CEO of Sixty Six Oilfield Services, effective immediately. In pursuing the Company’s stated goals, Mr. Clayton announced, “It’s my pleasure and honor to lead SSOF into a new era. We are immediately proceeding with plans to partner with a rig debt financing company to fund the purchase of the eleven (11) identified oil drilling rigs for a total purchase price of $40.00mm. This action represents an incredible opportunity to jumpstart the next phase of growth and expansion.” The initial round of rig funding is for $26.25mm for the purchase of six (6) 2000 HP Rigs with a second round of rig funding for $13.750mm for the purchase of five (5) 1500 HP Rigs. The Company expects to sell each of the 1500 HP Rigs within 6 months of purchase, each at a base case of $8.5mm as well as to sell each of the 2000 HP Rigs within 6 months of purchase, each at a base case of $13.75mm. The Company predicts that the base case scenario of the cumulative transactions will total $125mm with a net profit of $63.4mm before financing cost. The Company will self-fund the total refurbishment cost as needed per rig buyer. All oil rigs have already been appraised. These deals will be fully structured with interest, fees and compensating balances with funding to be placed in escrow with UCC liens
Mr. Clayton will also remain the President of the subsidiary Five Star Rig and Supply. Mr. Clayton has been with Five Star since 1993 and has worked in and managed all areas of the company including and most importantly customer growth and sales. In 2016, he became President of Five Star overseeing all day to day operations.
In leaving the post of CEO, Mr. Dave Ho stated, “It’s been a pleasure to serve the investment community and employees of SSOF over the last seven months. I plan to continue to work with and support Mr. Clayton in a new capacity to help advance the Company’s strategic goals that were formulated at the beginning of the year. The Company’s immediate future is in great hands with Jason. He brings a wealth of knowledge and impeccable credentials to lead the company and expand into the rig refurbishment business. This incredible opportunity will supercharge growth and propel SSOF to new heights of success.”
During this time of transition, Mr. Clayton is supported by longtime key staff members including Mr. Jimmy Joslin who has been with Five Star Rig and Supply since its inception in 1984. Mr. Joslin has worked in all areas of the company from shipping and receiving to warehouse management, manufacturing, sales, inventory control and administration. He is responsible for orders processing, inventory control, delivery, logistics and supervision of custom projects such as rig and rig equipment refurbishment, testing and certification as well as other general day to day duties. Mr. Jim Frazier, currently EVP, will remain with the company in the role of CFO as the company prepares for further growth and expansion.
In other updates, the Company is planning to engage with MarketNewsWire, www.networknewswire.com to assist in providing the best corporate communication with the market and our shareholders. The corporate address for SSOF is being updated to new company headquarters at 8009 S-I35 Service Road, Oklahoma City, OK 73149. Over the next few weeks, the Company will be updating the corporate web site to reflect all these new changes.
New York, NY -- August 29, 2018 -- InvestorsHub NewsWire -- Sixty Six Oilfield Services, Inc. (OTCBB: SSOF) announces Jason Clayton as the new President and CEO of Sixty Six Oilfield Services, effective immediately. In pursuing the Company’s stated goals, Mr. Clayton announced, “It’s my pleasure and honor to lead SSOF into a new era. We are immediately proceeding with plans to partner with a rig debt financing company to fund the purchase of the eleven (11) identified oil drilling rigs for a total purchase price of $40.00mm. This action represents an incredible opportunity to jumpstart the next phase of growth and expansion.” The initial round of rig funding is for $26.25mm for the purchase of six (6) 2000 HP Rigs with a second round of rig funding for $13.750mm for the purchase of five (5) 1500 HP Rigs. The Company expects to sell each of the 1500 HP Rigs within 6 months of purchase, each at a base case of $8.5mm as well as to sell each of the 2000 HP Rigs within 6 months of purchase, each at a base case of $13.75mm. The Company predicts that the base case scenario of the cumulative transactions will total $125mm with a net profit of $63.4mm before financing cost. The Company will self-fund the total refurbishment cost as needed per rig buyer. All oil rigs have already been appraised. These deals will be fully structured with interest, fees and compensating balances with funding to be placed in escrow with UCC liens
Mr. Clayton will also remain the President of the subsidiary Five Star Rig and Supply. Mr. Clayton has been with Five Star since 1993 and has worked in and managed all areas of the company including and most importantly customer growth and sales. In 2016, he became President of Five Star overseeing all day to day operations.
In leaving the post of CEO, Mr. Dave Ho stated, “It’s been a pleasure to serve the investment community and employees of SSOF over the last seven months. I plan to continue to work with and support Mr. Clayton in a new capacity to help advance the Company’s strategic goals that were formulated at the beginning of the year. The Company’s immediate future is in great hands with Jason. He brings a wealth of knowledge and impeccable credentials to lead the company and expand into the rig refurbishment business. This incredible opportunity will supercharge growth and propel SSOF to new heights of success.”
During this time of transition, Mr. Clayton is supported by longtime key staff members including Mr. Jimmy Joslin who has been with Five Star Rig and Supply since its inception in 1984. Mr. Joslin has worked in all areas of the company from shipping and receiving to warehouse management, manufacturing, sales, inventory control and administration. He is responsible for orders processing, inventory control, delivery, logistics and supervision of custom projects such as rig and rig equipment refurbishment, testing and certification as well as other general day to day duties. Mr. Jim Frazier, currently EVP, will remain with the company in the role of CFO as the company prepares for further growth and expansion.
In other updates, the Company is planning to engage with MarketNewsWire, www.networknewswire.com to assist in providing the best corporate communication with the market and our shareholders. The corporate address for SSOF is being updated to new company headquarters at 8009 S-I35 Service Road, Oklahoma City, OK 73149. Over the next few weeks, the Company will be updating the corporate web site to reflect all these new changes.
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