GeoBio Energy Signs LOI To Acquire Gas, Oil Field Construction Company

Published: 05-Feb-2010

GeoBio Energy has signed a letter of intent (LOI) to acquire a Colorado-based civil construction company that specializes in natural gas and oil field site preparation and maintenance.

Commencing operations in 1996, the construction company constructs, among other things, sites and platforms for drilling and reclaiming locations, access roads to and from wells, and reserve pits and production facility pads. The company's projects are primarily focused in the natural gas rich Piceance Creek basin.

L Miyatovich, CEO of GeoBio Energy, said: "This prospective acquisition target provides an exciting opportunity and is a great complement to H&M Precision Products (H&M). We believe both companies provide the platform necessary for us to benefit from the growing oil and natural gas services industry.

"We expect that the company's established construction capabilities, along with H&M's oil and natural gas chemical blending services, will provide synergistic revenue opportunities over a broad range of oil and gas services, and will potentially provide considerable added value to our customers."

GeoBio and its investment banker, Goodrich Capital, are currently working to secure financing of up to $20m to complete the acquisitions of the target company and H&M.

No items to display

Tell your friend about this article