Mullen bulks up oilfield portfolio

CALGARY — The Mullen Group Income Fund has entered into an agreement to acquire the transport division of Essential Energy Services Trust.

At a price of $135 million, Mullen will take over the assets of Essential’s fluid hauling and oilfield transport business units.

The fluid hauling businesses operate as Cascade Services in northern Alberta and northeastern B.C., and as Jacar Energy Services in southern Alberta. The oilfield transport businesses operate as Circle D Transport & Rentals in southern Alberta, as Prime Oilfield Hauling in the Grande Prairie, Alta.-region, as Polege Oilfield Hauling in northern Alberta and northeastern B.C. and as Leachman Oilfield Trucking in central/southern Alberta and Saskatchewan.

"Acquiring businesses leveraged to fluid hauling has been a strategic focus of Mullen for several years. In particular, we believe there are tremendous opportunities associated with the hauling and management of fluid in connection with resource plays in areas such as British Columbia and Saskatchewan," stated Stephen H. Lockwood, president and co-CEO.

Mullen also revealed that Ken Wagner, the COO of Essential has agreed to accept a position with Mullen as president of the Cascade Services and Jacar Energy Services business units.

In total, the transaction will add more than 1,000 pieces of equipment to the Mullen fold and the transaction is expected to close by early July.
 

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