Mammoth Energy Services, Inc. (NASDAQ:TUSK) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into Material Definitive Agreement
purchaser, entered into a definitive asset purchase agreement
(the Purchase Agreement) with Chieftain Sand and Proppant, LLC
and Chieftain Sand and Proppant Barron, LLC, unrelated third
party sellers (the Sellers), following Mammoths successful bid in
a bankruptcy court auction for substantially all of the assets of
the Sellers (the Assets) for $35.25 million (the Pending
Acquisition). The Assets subject to the Pending Acquisition
include a wet and dry plant located on approximately 600 acres in
New Auburn, Wisconsin and a sand mine with estimated reserves of
30 million tons of Northern White Jordan Substrate frac sand
which meets or exceeds API standards including solubility,
turbidity, roundness, sphericity and crush resistance. The
nameplate capacity of the dry plant, which is not operating
today, is 1.8 million tons per annum (Mtpa), with an expected
capacity of 1.5 Mtpa once it is operational. The Sellers
facilities are located on the Union Pacific Railroad with unit
train capability on site. The Pending Acquisition was approved by
the bankruptcy court at a hearing on March 27, 2017, but remains
subject to agreed closing conditions. The Pending Acquisition is
expected to close in the second quarter of 2017. Mammoth intends
to finance the purchase price for the Pending Acquisition with
cash on hand and borrowings under its revolving credit facility.
only and is qualified in its entirety by reference to the
Purchase Agreement, a copy of which is filed herewith as Exhibit
2.1 and is incorporated herein by reference.
successful bid in a bankruptcy court auction for the Assets of
the Sellers discussed in Item 1.01 above. A copy of the press
release is attached as Exhibit 99.1 to this Current Report on
Form 8-K.
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Exhibit
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2.1 #
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Purchase and Sale Agreement, dated as of March 27,
2017, by and between Mammoth Energy Services, Inc., as purchaser, and Chieftain Sand and Proppant, LLC and Chieftain Sand and Proppant Barron, LLC, as sellers. |
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99.1
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Press release dated March 23, 2017 entitled Mammoth
Announces Successful Auction Bid to Acquire 1.5 Mtpa Frac Sand Mine and Processing Plant for $35.25 Million. |
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The schedules (or similar attachments) referenced in this
agreement have been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule (or similar attachment) will be furnished supplementally to the Securities and Exchange Commission. |
About Mammoth Energy Services, Inc. (NASDAQ:TUSK)
Mammoth Energy Services, Inc. is an integrated oilfield service company. The Company is engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves. The Company’s segments include Contract Land and Directional Drilling Services; Completion and Production Services; Natural Sand Proppant Services, and Remote Accommodation Services. Its Completion and Production Services division provides pressure pumping services, pressure control Services, flowback services and equipment rentals. Its Natural Sand Proppant Services division is engaged in selling, distributing and producing proppant for hydraulic fracturing. Its Contract Land and Directional Drilling Services division provides drilling rigs and crews for operators, as well as rental equipment. Its Remote Accommodation Services division provides housing, kitchen and dining, and recreational service facilities for oilfield workers located in remote areas. Mammoth Energy Services, Inc. (NASDAQ:TUSK) Recent Trading Information
Mammoth Energy Services, Inc. (NASDAQ:TUSK) closed its last trading session up +0.53 at 20.12 with 79,705 shares trading hands.