Frontier Oilfield Services, Inc. Completes Key Milestone for Rollup in Saltwater Disposal Business
Jun 7, 2012 5:35:00 AM
DALLAS, TX -- (Marketwire) -- 06/07/12 -- Frontier Oilfield Services, Inc. (OTCQB: FOSI) (PINKSHEETS: FOSI) announced today that Lonestar Income and Growth, LLC -- an unrelated third party investor -- has completed the acquisition of Frontier Oilfield Services, Inc 2011 Series "A" 8% Preferred Stock. This completion will supply sufficient capital for Frontier Oilfield Services, Inc. to purchase a majority interest in Frontier Income and Growth, LLC and its wholly owned subsidiary, Trinity Disposal and Trucking, LLC, a saltwater transportation and disposal company in East Texas.
The move is considered pivotal in Frontier Oilfield Services' growth strategy. Trinity Disposal and Trucking, LLC currently operates eight permitted commercial disposal wells and 25 disposal tank trucks in a service area primarily located in East Texas and Northwestern Louisiana. There are approximately 4,000 producing wells within a 15 mile radius of Trinity's disposal sites situated in Marion, Harrison, and Panola Counties. Well proximity is crucial to maintaining efficient margins in the saltwater disposal business. Operational headquarters are located in Marshall, Texas and administrative headquarters will be located at Frontier Oilfield Services' corporate office in Dallas, Texas.
"This transaction completes the initial step of our new business plan, and sets the stage for Frontier Oilfield Services to continue expansion of our acquisition strategy into oilfield services, a key component of the energy sector," stated Tim P. Burroughs, President of Frontier Oilfield Services. "Monthly revenue from Trinity Disposal and Trucking, LLC has Frontier Income and Growth, LLC on a projected annual run rate of approximately $9,000,000 for 2012, with an estimated $15,000,000 unaudited value in assets. This is fantastic progress for our management team and shareholders."
Assets for Frontier Income and Growth, LLC consist primarily of Trinity Disposal and Trucking's commercial disposal wells, trucks, customer contracts, operations offices, and real property. Frontier Oilfield Services, Inc. will now purchase a majority interest of Frontier Income and Growth, LLC, which immediately enhances shareholder value for Frontier Oilfield Services, Inc. (OTCQB: FOSI).
"My well came in big, so big, Bick and there's more down there and there's bigger wells. I'm rich, Bick. I'm a rich 'un. I'm a rich boy." - Jett Rink
