Vivakor Signs Agreement to Acquire Companies with Assets Located in Two Major U.S. Oil Basins

Source: www.gulfoilandgas.com 6/16/2022, Location: North America

- Generated $33 Million Revenue and Positive Operating Cash Flow in 2021
- Complementary to Company's Existing Waste Remediation Activities and Provides Infrastructure for Continued Growth

Vivakor, Inc., a socially responsible operator, acquirer and developer of clean energy technologies and environmental solutions, announced that it has signed a definitive agreement to acquire Silver Fuels Delhi, LLC (operating in Louisiana) ("SF Delhi") and White Claw Colorado City, LLC (operating in Texas) ("WCCO"). If consummated, the acquisitions will enable Vivakor to enter a synergistic segment of the energy industry with the combination of a crude oil gathering, storage, and transportation facility, which feature long-term ten year take or pay contracts. In 2021, SF Delhi generated $33 million in revenue and positive operating cash flow.

The acquisition is structured as a Membership Interest Purchase Agreement ("MIPA") with the owners of SF Delhi and WCCO, Jorgan Development, LLC ("Jorgan") and JBAH, LLC ("JBAH"), to sell 100% of the membership interests of SF Delhi and WCCO to Vivakor for total consideration of approximately $37.4 million, subject to post-closing adjustments. The consideration to be paid by Vivakor under the MIPA consists of shares of Vivakor common stock in an amount equal to 19.99% of the total amount of issued and outstanding shares of Vivakor common stock immediately prior to closing, Vivakor promissory notes, and Vivakor's assumption of certain liabilities. The acquisitions are anticipated to be completed within thirty days, subject to customary closing conditions.

SF Delhi owns and operates a crude oil gathering, storage, and transportation facility located on approximately 9.3 acres near Delhi, Louisiana. For a period of 10 years, SF Delhi is, under existing crude oil supply agreements with White Claw Crude, LLC, guaranteed a minimum gross margin under a take or pay contract. At present, SF Delhi is gathering approximately 1,400 to 1,700 barrels of crude oil on a daily basis.

WCCO owns a 120,000 barrel oil storage tank, in the heart of the Permian Basin, located near Colorado City, Texas. The storage tank is presently connected to the Lotus pipeline system and Vivakor intends to further connect the tank to the Medallion and Wolf pipeline system if the acquisition is successfully completed. Under the terms of an already existing agreement, White Claw Crude, LLC has agreed to lease the oil storage tank for a period of 10 years. As with SF Delhi, WCCO would provide Vivakor with the infrastructure to blend and sell oil which has been recovered via Vivakor's RPC machine from tank bottom sludge and contaminated soil which exists in the Permian Basin.

Matt Nicosia, CEO and Chairman of Vivakor, stated, "The potential acquisitions of SF Delhi and WCCO provide a monumental opportunity for Vivakor. If we are able to close these acquisitions, we would add significant revenue and Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) while putting in place the necessary infrastructure to continue to grow our historical business of cleaning areas contaminated by hydrocarbons. When we have additional RPC machines manufactured and available, we would anticipate placing a RPC at each location and believe the synergies provided will result in Vivakor increasing revenue and earnings at such locations. Additionally, James Ballengee, the principal of Jorgan and JBAH, is a noted expert in the oil industry, having previously built and sold several sizable companies which operated in the oil industry, including Bridger Logistics, which was sold to Ferrellgas Gas Partners, L.P. for approximately $840 million. We anticipate welcoming James to the Vivakor team, as he utilizes his decades of energy industry experience to help drive our business development efforts moving forward."

James Ballengee, added, "Upon meeting with the Vivakor team, I instantly realized the synergy that could be accomplished by combining SF Delhi and WCCO with Vivakor and its patented RPC machine technology. The signing of the MIPA is the first step in this process. There is a need to clean up waste oil and improve the environment that only technology can achieve, and I believe this represents a huge opportunity for both parties."


Norway >>  8/5/2022 - Sval Energi is pleased to announce that the company has signed an agreement with Suncor Energy to acquire Suncor Energy Norge AS. ...
United States >>  8/5/2022 - United Energy Corporation announced 100% acquisition of Integrity Terminals, LLC., adding to UNRG’s previous minority ownership stake of 12%. Accordin...

United States >>  8/4/2022 - CapturePoint Solutions LLC (CPS), a subsidiary of CapturePoint LLC based in Allen, Texas, announced that it has signed a Letter of Intent (LOI) with a...
Sweden >>  8/2/2022 - Alfa Laval has completed the acquisition of Desmet, part of the Desmet Ballestra Group, a world leader in engineering and supplying processing plants ...

Canada >>  8/1/2022 - - Global Green Hydrogen market expected to reach US$72 Billion by 2030(4) with growth anticipated at a 54.7% CAGR between 2021 and 2028(3)
- Pro...

Norway >>  8/1/2022 - Reference is made to the stock exchange announcement by Hexagon Composites on 21 April 2022, regarding the agreement to acquire a 40% stake in Cryoshe...




Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.