Longmont, Col.-based Enservco Corporation announced Monday it had acquired all of the assets for oilfield services provider Rapid Hot, based in Washington, Pa.
Enservco, a national provider of specialized well-site services for domestic onshore oil and gas industries, purchased the company in an all-stock transaction valued at more than $1 million. Rapid Hot provides services to E&P customers in the Appalachian Basin and provides frac water heating service in Ohio, Pennsylvania and West Virginia.
“This acquisition substantially strengthens Enservco’s position in the Marcellus shale and also strengthens our management team with the addition of Mike Lade, Rapid Hot’s president and CFO, who joins Enservco as chief of staff,” said Rich Murphy. “We are also pleased to announce the closing of a $1,625,000 convertible debt financing that included participation from lead investors of Rapid Hot, an Enservco board member and Cross River Partners. The financing strengthens our working capital position as we approach our 2023-24 heating season, which is expected to benefit from anticipated cooler winter temperatures.”
Enservco provides services including hot oiling, acidizing, frac water heating and related services to customers in Colorado, Montana, New Mexico, North Dakota, Oklahoma, Pennsylvania, Ohio, Texas, Wyoming, West Virginia, Utah, Michigan, Illinois, Florida, and Louisiana.
Since 2007, Rapid Hot has provided services in the Appalachian Basin to more than 40 major and independent E&P companies. The company said its fleet of Bobtail mounted units provides greater flexibility to handle customers’ thermal service needs, with a single truck footprint of only 8.5’ by 42’ which allows trucks to fit alongside the tightest Appalachian take point.