SOURCE: Frontier Oilfield Services, Inc.
DALLAS, TX--(Marketwire - Jun 7, 2012) - Frontier Oilfield Services, Inc. (OTCQB: FOSI) (PINKSHEETS: FOSI) announced today that Lonestar Income and Growth, LLC -- an unrelated third party investor -- has completed the acquisition of Frontier Oilfield Services, Inc 2011 Series "A" 8% Preferred Stock. This completion will supply sufficient capital for Frontier Oilfield Services, Inc. to purchase a majority interest in Frontier Income and Growth, LLC and its wholly owned subsidiary, Trinity Disposal and Trucking, LLC, a saltwater transportation and disposal company in East Texas.
The move is considered pivotal in Frontier Oilfield Services' growth strategy. Trinity Disposal and Trucking, LLC currently operates eight permitted commercial disposal wells and 25 disposal tank trucks in a service area primarily located in East Texas and Northwestern Louisiana. There are approximately 4,000 producing wells within a 15 mile radius of Trinity's disposal sites situated in Marion, Harrison, and Panola Counties. Well proximity is crucial to maintaining efficient margins in the saltwater disposal business. Operational headquarters are located in Marshall, Texas and administrative headquarters will be located at Frontier Oilfield Services' corporate office in Dallas, Texas.
"This transaction completes the initial step of our new business plan, and sets the stage for Frontier Oilfield Services to continue expansion of our acquisition strategy into oilfield services, a key component of the energy sector," stated Tim P. Burroughs, President of Frontier Oilfield Services. "Monthly revenue from Trinity Disposal and Trucking, LLC has Frontier Income and Growth, LLC on a projected annual run rate of approximately $9,000,000 for 2012, with an estimated $15,000,000 unaudited value in assets. This is fantastic progress for our management team and shareholders."
Assets for Frontier Income and Growth, LLC consist primarily of Trinity Disposal and Trucking's commercial disposal wells, trucks, customer contracts, operations offices, and real property. Frontier Oilfield Services, Inc. will now purchase a majority interest of Frontier Income and Growth, LLC, which immediately enhances shareholder value for Frontier Oilfield Services, Inc. (OTCQB: FOSI).
FORWARD LOOKING STATEMENTS
Statements contained in this release that are not historical facts are forward-looking statements that involve risks and uncertainties. Among the important factors which could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, those discussed in "Risk Factors" in the Company's Forms 10-K, Forms 10-Q, and other filings with the Securities and Exchange Commission. Such risks factors include, but are not limited to, a limited operating history with no earnings; reliance on the Company's management team; the ability to successfully implement the Company's business plan; the ability to continue as a going concern; the ability to fund the Company's business and acquisition strategy; difficulty in managing operations of acquired businesses; and limited trading in the public market for the Company's common stock. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.