NEW YORK, July 10, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE--Sixty Six Oilfield Services, Inc. (OTCBB:SSOF) announces that it has completed the acquisition of Five Star Rig and Supply, Inc., an Oklahoma based drilling rig and supply parts company in an all stock transaction. This transaction will allow the Company to quickly expand and capitalize on the soaring Oil and Gas industry and move from just pipe sales to include oil rig purchasing, refurbishing, and sales. One of our key goals of the acquisition is to immediately finance six (6) to eleven (11) oil rig with refurbishment and sale opportunities in 2018.
The new unified Company will have a 2017 combined revenue of $12.6M with Gross Profits of $6.2M, more than twice the size of the original company. The Company will seek to immediately eliminate duplicate sales functions and certain assets and activities will be spun off to the original 66 Oilfield Supply LLC principals. The principal stockholders of Five Star received the controlling block of the Company's preferred stock. The Company plans to complete a registration of the company's stock and raise up to $40 Million for the purchase and resale of the drilling rigs through the sale of equity, convertible debt, and standard industry equipment financing. The rigs will provide more pipe sales for the company's original core business as well as move the company into new areas that include equipment refurbishing and equipment servicing.
Dave T. Ho, the Company's Chief Executive Officer, said, "The acquisition of Five Star is a momentous day in the history of the Company. Although it took longer than originally expected, it finally fulfils our April announcement and will propel us into a great future. We are excited that our opportunity with the upcoming rig sales may increase our gross revenues as much as seven-fold in 2018. With the acquisition complete, the Company will restart the audit process on July 12th. The Company plans to complete the audit and prepare to uplist to a national exchange in the quarter. This is a critical part of the capital raise we are conducting to finance the rig deals for the second half the year and beyond."
Mr. Jason Clayton, President of Five Star has been nominated to the Board of Directors and Dave Ho will continue as Chairman during the transition. Mr. Clayton said, "It's a privilege to serve the company and the shareholders. We are excited about our new opportunities for growth as we forge ahead." The merged oil and energy business will remain in Oklahoma City. To fulfil our stated mission of expansion, the Company is now starting to identify potential acquisition targets to add to its portfolio.
About the Company
Sixty Six Oilfield Services, Inc. is located on Lexington Ave in Manhattan, NY and is a Nevada registered holding company. The Company is actively pursuing a strategy of acquiring a diverse range of energy, strategic marketing and technology businesses for its portfolio. The Company's oilfield and rig services division is in Oklahoma City.
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.
For more information, contact:
Dave Ho, Chairman at
Sixty Six Oilfield Services, Inc.
450 Lexington Ave
4th floor
New York, NY 10017
(929) 383-0821
PR@sixtysixoilfield.com