Sylvan Lake-based Lonestar West Inc. (TSXV: LSI) has strengthened its presence in Saskatchewan.
The company, which operates hydrovac and vacuum trucks across Western Canada and in the United States, announced on Friday that it’s acquired certain assets of Vamp Oilfield Services Inc.
The deal involved two hydrovac and nine vacuum trucks, as well as 12 ancillary vehicles, all based in Moose Jaw.
The purchase price was $9.77 million, which consisted of $5.52 million in cash, unsecured promissory notes for $2.25 million and 543,478 common shares in Lonestar.
“The Vamp acquisition is in line with our corporate growth strategy,” said Lonestar CEO James Horvath in a release.
“The addition of a base in Moose Jaw, Sask., will complement our existing base in Carlyle, Sask., and expand our presence in Western Canada.”
The acquisition increased Lonestar’s fleet to 116 units from 93.
11 per cent poor, 27 per cent fair, 59 per cent good and three per cent excellent.