- Global oil and gas equipment industry projected to be worth $205 billion by 2020
- 665 Energy’s three subsidiaries now integrated under new holding company with combined revenues of $12.6 million
- Expansion plans include move into oil drilling rig acquisition, refurbishment and resale business
- Financial audit underway with plans to become an SEC reporting standards company and move to OTCQB in Q4 2018
665 Energy, Inc. (OTC: SSOF), a holding company in the oilfield equipment and supply industry with facilities in Oklahoma, Germany and Dubai, specializes in supplying oilfield equipment, drilling rigs and drilling pipe. A recent name change from 66 Oilfield Services is designed to distinguish the corporate structure of the holding company from its three operating companies: Five Star Rig and Supply; Oklahoma Rig Fabricators; and 66 Oilfield Services, according to a recent news release (http://nnw.fm/We7JX).
The global market for oil and gas equipment is expected to grow from its current $194 billion to $205 billion by 2020, research firm Statista reported (http://nnw.fm/1tNkD). Jason Clayton, president and CEO of 665 Energy, noted in a news release that the company is moving into a new era that he expects will be beneficial for stakeholders. The company is proceeding with plans to partner with a rig debt financing company to fund the purchase of 11 identified oil drilling rigs – six 2,000 HP Rigs and five 1,500 HP Rigs – for a total of $40 million.
“This action represents an incredible opportunity to jumpstart the next phase of growth and expansion,” Clayton explained, noting that the company expects to sell each of the 2,000 HP Rigs at a base case of $13.75 million and the 1,500 HP Rigs at a base case of $8.5 million, all within six months of purchase. Once the cumulative transactions are complete, Clayton said that the company predicts the base case scenario will total $125 million with a net profit of $63.4 million before financing cost (http://nnw.fm/mC7uG).
Clayton comes to 665 Energy following the acquisition of Fluid End Sales, which is doing business as Five Star Rig and Supply. Clayton’s tenure at Five Star, which began in 1993, included working in and managing all areas of the company, notably customer growth and sales. He became president of Five Star in 2016 and is now advancing 665 Energy’s strategic goals as its new president.
665 Energy is a leader in supplying the industry with the right equipment at the right time and at the right price. As subsidiaries of 665 Energy, the following companies provide specialized attention and expertise in addition to customized solutions for the domestic and international oil and gas markets:
- Five Star Rig and Supply is a comprehensive oilfield supply and equipment company that caters to more than 300,000 SKUs through over 500 vendors. The company also manufactures a variety of oilfield equipment.
- Oklahoma Rig Fabricators to date has built and/or refurbished 37 oil rigs. The company offers complete drilling rigs, provides custom inspections and rig certifications and manufactures everything from pipe racks to complete mud pump packages and mud pit systems.
- 66 Oilfield Services specializes in providing a full range of drill pipe equipment and services to the oil and gas industry.
665 Energy’s primary customers are companies active in the upstream, midstream and downstream sectors of the energy industry, including drilling contractors, well servicing companies, independent and national oil and gas companies, midstream operators, refineries, petrochemical, chemical utilities and other downstream energy processors. Beyond North America, 665 Energy’s key markets are focused on Latin America, the North Sea, the Middle East, Asia-Pacific and the former Soviet Union. Sales are logged to over 300 customers operating in approximately 20 countries around the world.
According to a new report issued by Credence Research titled “Global Production Oilfield Services & Equipment Market,” the industry is expanding at a compound annual growth rate of 4.6 percent with a total projected value of $207.9 billion by 2023 (http://nnw.fm/V8qQ2). The global production oilfield services and equipment market is expected to gain momentum due to increasing demand for fossil fuel and with recovery in oil prices, the report states.
665 Energy’s size and scale ensures potential customers that the right inventory is on-hand. The company’s headquarters are situated in Oklahoma City on 35 acres, providing enough space to build or refurbish up to three oil rigs at one time. An expansion into the oil drilling rig acquisition, refurbishment and resale business is well underway as the company prepares for further growth and expansion in energy-related businesses.
For more information, visit the company’s website at www.665Energy.com
More from NetworkNewsWire
About NetworkNewsWire
NetworkNewsWire (NNW) is a financial news and content distribution company that provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to nearly 2 million followers, (5) a full array of corporate communications solutions, and (6) a total news coverage solution with NNW Prime. As a multifaceted organization with an extensive team of contributing journalists and writers, NNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, NNW brings its clients unparalleled visibility, recognition and brand awareness. NNW is where news, content and information converge.
To receive instant SMS alerts, text STOCKS to 77948
For more information, please visit https://www.NetworkNewsWire.com
Please see full terms of use and disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
No comments:
Post a Comment