Millennium Stimulation Services

Millennium Stimulation Services

August 14, 2014 09:00 ET

Millennium Acquisition of ENFRAC

CALGARY, ALBERTA--(Marketwired - Aug. 14, 2014) - Millennium Stimulation Services Ltd. ("Millennium" or the "Company") continues to execute on its objective to grow the business through both new equipment construction as well as strategic and synergistic acquisitions. The Company is pleased to report that it has acquired ENFRAC Inc. ("ENFRAC"), the first major acquisition in the Company's history. Millennium believes that ENFRAC will form an important part of its future growth strategy.

The Company will also be making a separate press release which provided Millennium's operational update, capital program and an equity financing initiative which Millennium is pursuing.

Adding LNG Services to Millennium's Tool Box

With an equally strong focus on both differentiation and acquisition growth, Millennium has acquired its first company, ENFRAC Inc. The purchase price for ENFRAC was up to $12,000,000, satisfied by the issuance by Millennium of 8,000,000 common shares at a deemed price of $1.50/share; 4,000,000 of which were issued upon closing, and the balance may be issued at a future date, subject to the satisfaction of certain operational milestones.

ENFRAC is an energized or foam frac completion technology company that brings to us a highly differentiating completion technology through the use of Liquefied Natural Gas ("LNG"). The team at ENFRAC has developed a streamlined and efficient method of pumping LNG in energized or foam frac applications. Hydrocarbon fracturing has long been known to create above average oil and gas reserves recovery. This is especially true when there is a liquids rich gaseous combination creating a multiphase flow regime in the formation. LNG brings these significant advantages into play without the hazards of handling propane and other heavier than air natural gas liquids ("NGL's"). The Millennium team continues to stress a high level of commitment to its health, safety and environmental responsibilities to all of its stakeholders.

Millennium is also pleased to announce that Mr. Grant Nevison, founder of ENFRAC will be joining the Company as an Executive Vice President. Mr. Nevison will provide leadership in advancing Millennium's LNG service initiatives. Mr. Paul Crilly will be joining Millennium's board of directors.

Zero Emissions Energized Frac Technology

  • Flaring eliminated, reduced completion emissions
  • Reduced water requirement
  • Superior energizer for oil & liquids rich gas wells
  • Superior energizer when pumping hydrocarbon frac fluid
  • Improved economics from better well performance
  • Improved economics from reduced energizer cost
  • Improved economics from zero flaring
  • LNG properties make it safe to handle

LNG Safety and Process

  • Hazard and Operability Study (HazOp) has been completed
  • Lighter than air, will not accumulate in low areas
  • High ignition temperature and low flame propagation speed
  • LNG is pumped with existing or our new cryogenic Nitrogen pumps
  • Pressure testing, system function test and purge with Nitrogen
  • LNG is stored at atmospheric pressure
  • Proppant slurry pumped with conventional frac equipment
  • LNG added down stream of high pressure frac pumps


The primary assets of ENFRAC is proprietary technology, some of which is currently in the patent pending stage. Moving forward with the patents provided within the ENFRAC deal allows Millennium to capitalize in various areas.

  • Millennium will have exclusivity to this technology given the patents, which prohibit any other company to use or mimic the process without the consent of Millennium.
  • Exclusivity also provides Millennium with a licensing opportunity should other frac providers wish to make use of the same technology or processes where Millennium is unable to pursue in a timely manner.

The ENFRAC acquisition should prove to all Millennium stakeholders that the Company is focused on growth and a high degree of differentiation. Should LNG pumping become mainstream within the industry, Millennium will be in a strong strategic position relative to its peers.

Forward Looking Statements and Advisories

This investor update contains certain forward-looking information and forward-looking statements (collectively, "forward-looking statements") under the meaning of applicable securities laws. The use of the words "would", "intend", "anticipate", "potential", "will", "expected", "can", "may", "should" and derivations thereof and similar terms identify forward-looking statements. In particular, but without limiting the foregoing, this news release contains forward-looking statements regarding: Millennium's plans and expectations regarding operational and growth activities; the anticipated benefits of the transaction to Millennium and its shareholders; the anticipated terms of the financing; the timing and cost of capital expenditures; and the timing of operations.

The forward-looking statements contained in this investor update reflect several material factors and expectations and assumptions of Millennium including, without limitation, assumptions relating to the ability of Millennium to execute its current business plan and operational plans in the manner currently planned. Millennium believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct.

The forward-looking statements contained in this investor update are subject to risks, uncertainties and other factors that could cause actual results or outcomes to differ materially from those contemplated by the forward-looking statements, including among others: failure to realize the anticipated benefits of the transaction; the successful exploitation and integration of the technology; customer acceptance and demand for the technology; success in obtaining issued patents; the potential development competing technologies by market competitors; and the availability of products, raw materials and qualified personnel.

Accordingly, readers should not place undue reliance on the forward-looking statements contained herein. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this investor update are made as of the date of this investor update and Millennium disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation.

Contact Information

  • Millennium Stimulation Services Ltd.
    Michael Heier
    President and Chief Executive Officer
    (403) 234-8144

    Millennium Stimulation Services Ltd.
    Roy Ma
    Vice President, Business and Corporate Development
    (403) 234-8144