CALGARY, May 3 /CNW/ - SECURE Energy Services Inc. ("Secure" or the "Corporation") (TSX - SES) announced today that it has acquired the operating assets of Pembina Area Landfill Ltd. a subsidiary of Clean Harbors Inc. for a purchase price of $11.75 million (excluding transaction costs), which Secure paid in cash. The landfill is located approximately 60 kms northwest of Drayton Valley, AB in the Pembina oilfield.
For the 12 months ended December 31, 2009, Pembina Area Landfill Ltd's revenue from operations was approximately $7 million and earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA) was approximately $3.6 million (unaudited).
About Pembina Area Landfill:
The Pembina Area Landfill consists of two separate landfill cells. A Class II cell, similar to those operated by Secure at South Grande Prairie and Willesden Green, will provide disposal of non-dangerous reclamation solids and drill cuttings to surrounding oil and gas customers. A Class I landfill, one of only two facilities licensed in the Province of Alberta, will accept industrial hazardous solids and dangerous oilfield wastes. The Class I landfill design consists of an engineered clay liner, two synthetic liners, leak detection, leachate collection system and a series of environmental monitoring programs.
"This acquisition expands our footprint to 10 facilities and gives us operational flexibility for Secure's internal treated solids. The external solids market continues to grow in the maturing western Canadian basin. This acquisition is strategic for Secure in that it gives Secure an immediate presence in the Pembina Cardium market. This is a well established market place with exciting opportunities presented by the increased use of multi-stage horizontal fracs to improve recovery in a major Canadian oilfield," said Rene Amirault, President and Chief Executive Officer of Secure. "The Pembina field is well delineated with vertical wells and has considerable infrastructure in place to facilitate new horizontal development."
Date of release of First Quarter results
Secure intends to release its First Quarter results on Tuesday, May 11, 2010 after the close of the market.
About Secure Energy Services Inc.
Secure is a TSX publicly traded energy services company that focuses on providing specialized services to upstream oil and natural gas companies operating in the Western Canadian Sedimentary Basin. The services provided by Secure assist these companies with the treatment and sale of crude oil and the handling of by-products associated with oil and natural gas development and production. The services provided by Secure include crude oil emulsion treatment, the terminalling, storage and marketing of crude oil, oilfield waste processing, tank washing, landfill disposal and disposal of produced and waste water. The Corporation's services are provided at nine facilities in Alberta and one facility in British Columbia.
The financial information with respect to Pembina Area Landfill was provided to Secure by representatives of the vendor. Both Revenue and EBITDA are unaudited financial measures that have been included to enable readers to assess the effect of the transaction on the financial performance of Secure. When used in this news release, the word "will" and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the date that the statements are made, and the Corporation undertakes no obligation to update forward-looking statements if conditions or opinions should change, except as required by applicable law.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.