Alberta's Petrowest Corporation is looking to secure more LNG transition line construction projects as it announced a $6.35 million purchase agreement for Enviro-Mulch Land Clearing Solutions Ltd.
Petrowest is also assuming about $2.3 million of Enviro-Mulch’s debt, of which $800,000 will be converted to an operating lease.
The final purchase price to be paid will be about $3.6 million in cash and the issuance of about 2.87 million Class A common shares of Petrowest having a value of about $2.73 million. Closing of the deal happened May 12.
Enviro-Mulch is an environmentally-conscious land clearing and construction site preparation company operating in northeastern B.C. and northern Alberta.
“Petrowest’s scope of services, especially for those driven by LNG opportunities, continues to increase,” said Rick Quigley, Petrowest’s chief executive officer.
He said acquiring the site prep company allows Petrowest to be the first in for oilfield and general construction services.
“We had previously followed Enviro-Mulch into our work sites and now with the acquisition, we will be working as one,” he said.
Petrowest is involved in pre-drilling and post-completion energy services as well as industrial and civil infrastructure projects, gravel crushing and hauling for non-energy sector customers.
Its primary base of operation is out of Grande Prairie in northern Alberta and in northeastern B.C.
JOC NEWS SERVICES