2010-07-01-2010-06-28-2010-07-27

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
0MM
Description

Aspen will be 100% owner of Hugoton, Kan.-based Dillco Fluid Services &indirectly 100% owner of Colorado Springs, Colo.-based Heat Waves Hot Oil Service.

Denver-based Aspen Exploration Corp. (OTCBB: ASPN) has acquired privately held Hugoton, Kan.-based oilfield services provider Dillco Fluid Services Inc. and Colorado Springs, Colo.-based well-site services provider Heat Waves Hot Oil Service LLC for an undisclosed price.

The newly merged oilfield services group will operate as Enservco Corp. and will continue to trade as ASPN until further notice.

In June 2009, Aspen divested its oil and gas assets, subsequently existing as a shell company, Dillco noted in a press release. Aspen's portfolio will now consist of more than 200 specialized trucks, trailers, frac tanks and related well-site equipment, with operations in Colorado, Utah, Wyoming, Kansas, Texas, Oklahoma and New Mexico. Additionally, the company will expand its presence in the leading Marcellus shale and emerging North Dakota Bakken plays via its indirect 100% ownership in Heat Waves.

Dillco and its affiliated businesses generated revenues of approximately $31 million and net income of $3.4 million as of year-end 2008. In 2009, revenues were $15.4 million, with a net loss of $5.9 million due to lower oil prices and the resulting downturn in domestic E&P activity. As of March 31, Dillco businesses have recorded higher revenues of $5.9 million, up from $5.7 million during the corresponding period of 2009.

Dillco chairman and chief executive Mike Herman has been named Enservco president, CEO and director. Herman says, "In recent years, we believe that Enservco has grown into one of the domestic energy-service industry's leading providers of hot oiling, acidizing and frac heating services. We have established an aggressive strategy for maintaining our geographic and operational expansion, and believe our public-company status will provide us with access to new financing options, and will elevate our profile within the investment community as we pursue our growth objectives."