Primo Field Services announces it has acquired 4 brand new, zero hour rigs to the company's portfolio, and has entered into a credit facility of up to $6 million. This funding completes Primo Field Services' Stage 1 financing plan for the organic development and growth of Primo's West Texas operations. Primo Field Services is a hands on field services company serving some of the Permian Basin's largest Oil & Gas Operators, providing clients with cellar, conductor and mouse hole drilling and preset surface drilling.
The acquisition of these 4 rigs will enable Primo Field Services to drill over 1,500 new wells in the Permian Basin.
The secured credit facility of up to $6 million is through a Senior Secured credit agreement and will accrue interest at a rate equal to the Prime Rate plus 4.0% per annum. The investment is provided by a large and top tier debt fund.
Jeff Harber, CEO and President of Primo Field Services, said, "We are pleased to announce these 2 major milestone transactions, which will allow Primo Field Services' operational team to scale and grow aggressively because of the expected long-term demand of oil and natural gas – both domestically and internationally. This funding provides the financing to meet our growth projections organically, it allows us to evaluate strategic joint ventures and acquisitions, and it allows us to see clearly into the future so that we can best serve the top Operators in the Permian Basin, and across America."
Josh Cohen, CEO and President of Controlled Capital, an advisor to Primo Field Services, leading the company through its capital initiatives together with Jeff, said, "This is a great accomplishment for Jeff and our whole team at Primo, and will set the stage for Primo Field Services to do what we do best – grow sustainably and consciously, while putting the needs of our Operators, and the company's employees first and for the betterment of American Energy."