Sixty Six Oilfield Services, Inc. (OTC Pink: SSOF) is engaged primarily as a heavy oilfield equipment company, which is also expanding into the oil drilling rig business. Shares of the oilfield equipment company are surging 69%, through afternoon trading on Wednesday, August 29, 2018. Over the past month, Sixty Six Oilfield Services, Inc. has seen average daily volume of 2.32 million shares. However, volume of 20.97 million shares or dollar volume of $201,312, has exchanged hands through afternoon trading on Wednesday.
Shares of Sixty Six Oilfield Services, Inc. are jumping today, after the company announced that Jason Clayton has been appointed as the new President and CEO of the company. Clayton says he plans to immediately partner with a rig debt financing company to help with the funding for the purchase of eleven oil drilling rigs for grand total of $40 million. There will be two rounds of funding, which will together total the eleven rigs as noted. Overall, the company says it expects to sell each set of drilling rigs within six months for a total of $125 million and net profit of $63.4 million (before financing costs). Here is the full press release detailing of the new corporate leadership and drilling rig financing plans:
Sixty Six Oilfield Services, Inc. Press Release:
NEW YORK, Aug. 29, 2018 (GLOBE NEWSWIRE) — via OTC PR WIRE — 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 NetworkNewsWire, 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.
About the Company
Sixty Six Oilfield Services is a third-generation heavy oil field equipment company founded in Oklahoma in 1959. Subsequent to the period ending June 30, 2018, the Company completed an acquisition of Fluid End Sales doing business as Five Star Rig and Supply which was established as a family owned business in 1984. The Company will continue to focus on supplying the oil industry with custom drilling rigs, heavy-weight drill pipe, drill collars, pup joints, pony collars, handling tools, tubing, casing, blow-out preventers, engines, compressors and other select equipment to customers worldwide through its facilities in Oklahoma City, Germany, and Dubai. The Company’s services include the sale of new equipment, sale of refurbished and certified used equipment, as well as rental of oilfield equipment. The Company is currently expanding into the oil drilling rig acquisition, refurbishment, and resale business.
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.