Millennium Stimulation Services Ltd has acquired ENFRAC Inc. at a purchase price of US$ 12 million, satisfied by the issuance by Millennium of 8 million common shares at a deemed price of US$ 1.50/share.
ENFRAC has developed a streamlined and efficient method of pumping LNG in energised or foam frac applications. Hydrocarbon fracturing has long been known to create above average oil and gas reserves recovery. This is especially true when there is a liquids rich gaseous combination creating a multiphase flow regime in the formation. LNG brings these significant advantages into play without the hazards of handling propane and other heavier than air natural gas liquids (NGLs).
Millennium also confirmed that the founder of EFRAC, Grant Nevison, will be joining the company as an Executive Vice President. Mr. Nevison will provide leadership in advancing Millennium’s LNG service initiatives. Paul Crilly will be joining Millennium's board of directors.
Patents
The primary assets of ENFRAC are its proprietary technology, some of which is currently in the patent pending stage. Moving forward with the patents provided within the ENFRAC deal allows Millennium to capitalise in various areas. Millennium will have exclusivity to this technology given the patents, which prohibit any other company to use or mimic the process without the consent of Millennium. Exclusivity also provides Millennium with a licensing opportunity should other frac providers wish to make use of the same technology or processes where Millennium is unable to pursue in a timely manner.
With this acquisition, Millennium believes that it will be in a strong position should LNG pumping become mainstream within the industry.
Adapted from press relesase by Callum O'Reilly