CALGARY, ALBERTA--(Marketwired - Dec. 7, 2015) - Critical Control Energy Services Corp. ("Critical Control" or the "Corporation") (TSX:CCZ) is pleased to announce that it has entered into a purchase and sale agreement and reciprocal cooperation agreement with Fleaux Services of Louisiana, L.L.C. ("Fleaux").
Under the terms of the agreements, Critical Control's US operating subsidiary Gas Analytical Services, Inc. ("GAS") shall acquire and continue the measurement services business of Fleaux including meter calibration, testing and sampling. GAS shall provide Fleaux and their clients continued measurement services and augment the remainder of Fleaux's services with measurement expertise.
In return, Fleaux has agreed to resell Critical Control's software solutions, utilize GAS' fluid analysis labs and augment GAS' field solutions with field automation expertise outside of GAS' current geographic areas.
"We are pleased to form a reciprocally beneficial relationship with a strong partner to expand our geographic presence in the United States," said Alykhan Mamdani, President and CEO of Critical Control. "This transaction strengthens our field presence while enabling Fleaux to focus on their key strengths to better serve both client bases."
The contracts assumed pursuant to the acquisition are expected to generate an additional CAD$1 million in recurring revenue to the Corporation.
The expectation of revenue from the contracts assumed is based on the revenue derived from historic performance under the contracts by Fleaux. The contracts do not guarantee future revenue. There can be no assurance that the customers will continue to use the Corporation's services in the same capacity as in prior periods. Industry conditions and the individual plan of each customer could materially affect the expected revenue from the contracts.
About Critical Control
Critical Control provides solutions for the collection, control and analysis of measurement and operational data related to oil and gas wells across North America. We provide services to capture the data, cloud-based software to visualize and manage it and the business intelligence to make quicker and more informed operational decisions.
About Fleaux Services
Fleaux Services offers a variety of oil and gas measurement, automation and production equipment. They design, fabricate and package orifice, ultrasonic, and LACT measurement skids. Fleaux offers complete engineering services in determining appropriate voltage and current demand parameters for autonomous, scalable and reliable energy skid packages.
Source: Marketwired (Canada)
(December 7, 2015 - 9:01 AM EST)
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