Enservco Corp. (NYSE: ENSV) said Jan. 20 it has acquired water management assets from HII Technologies Inc. and WET Oilfield Services LLC for $4 million.
The assets include high and low volume pumps, piping, manifolds, and other support equipment. They were purchased at an average of about 20-25% of their original cost, the release said.
Following the acquisition, the Denver company has launched a new water management division named Heat Waves Water Management LLC (HWWM).
HWWM will initially offer water transfer services and bacteria and scaling treatment solutions to customers in all of its operating areas. In addition, HWWM will be providing oilfield support equipment on a rental basis.
Enservco anticipates adding additional water management services as the service line grows such as flow back to the mix, the release said.
The three founding managers of WET have joined Enservco along with about 20 field personnel. One of the WET managers was instrumental in the establishment of water transfer services for Halliburton (NYSE: HAL), Select Energy Services LLC and Red Oak Energy LLC, the release said.
HII and WET both exited the business due to the industry downturn, according to the release.
Enservco worked with its lender, PNC Bank, to modify a loan covenant regarding leverage to facilitate the acquisitions.
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