Petrocapita Income Trust
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Petrocapita Income Trust

November 02, 2016 18:28 ET

Petrocapita Announces Acquisition of Smartworks Oilfield Maintenance Ltd.

CALGARY, ALBERTA--(Marketwired - Nov. 2, 2016) - Petrocapita Income Trust (CNSX:PCE.UN)(CSE:PCE.UN)(CSE:PCE.UN.CN) ("Petrocapita" or the "Trust") announces that it has acquired all of the issued and outstanding shares of Smartworks Oilfield Maintenance Ltd. ("Smartworks") as at October 01, 2016. The effective date of the transaction is August 1, 2016. The shares were acquired by issuance to the shareholders of a convertible debenture representing their respective shareholdings, which debenture is secured by the assets acquired in the total amount of $176,500.00. The term of the debenture is 7 years, carries an interest rate of 6%, is amortized over 6 years beginning on October 1, 2017, and is convertible into common trust units of Petrocapita on or after December 31, 2017 at the volume weighted average trading price of such unit on the principal market for such units for each of the last 20 trading days prior to the date of conversion set by the exercise of the option to convert.

Smartworks operates fully operational oilfield service trucks required to maintain oil and gas compression, pumping and hydraulic equipment, oil and gas drilling rigs, service rigs, transport trucks, trailers and custody transfer equipment. Smartworks will become a wholly owned subsidiary of Petrocapita Processing L.P., a limited partnership formed to hold the Trust's wellsite production and treating facilities, produced water disposal facilities in Alberta and Saskatchewan, central treating and disposal facilities near Edam, Landrose, and Marsden Saskatchewan, well servicing rigs, fluid transport equipment and other midstream assets critical to oil operations in the area.

About Petrocapita

Petrocapita Income Trust is a Specified Investment Flow Through trust developing and acquiring heavy oil production and infrastructure assets in the Lloydminster area of east central Alberta and west central Saskatchewan through its wholly owned subsidiary, Petrocapita Oil and Gas LP. Petrocapita owns and operates 435 gross (412.7 net) oil wells, 89 gross (20 net) gas wells, 19 produced water disposal facilities, 3 custom oil processing facilities, two natural gas compressor stations, 72.51 km in pipelines, oil well service rigs, fluid haul tractors and trailers, motor graders, and well site processing equipment. It is seeking accretive opportunities to acquire both oil production and complimentary midstream assets during a cyclical low in the oil and gas markets.

Contact Information

  • Petrocapita GP I Ltd., as Administrator
    of Petrocapita Income Trust
    Mr. Alex Lemmens, President and Chief Executive Officer, or
    Ms. Janet Stillwell, Investor Relations
    Telephone: (587) 393-3456