Steel Excel Acquires Bakken-Focused Oilfield Service

Acquired Sun Well Service Inc. which provides well services in Williston Basin in ND & MT.

Steel Excel Inc., San Ramon, Calif., (Pink Sheets: SXCL) has completed the acquisition of Sun Well Service Inc., the operating subsidiary of BNS Holding Inc., Los Gatos, Calif., (Pink Sheets: BNSSA) for approximately $68.72 million in cash and stock.

Steel Excel issued 2 million shares valued at $60.825 million and paid $7.9 million in cash.

Sun Well is a provider of well services to oil and gas exploration and production companies operating in the Williston Basin in North Dakota and Montana. Steel Excel intends to combine the operations of Well Services Ltd., which provides oilfield services in the Bakken Basin, with the operations of Sun Well under the direction of the current Sun Well management team.

The combined company will operate going forward out of the new Sun Well facility in Williston, North Dakota under the Sun Well name. The Sun Well operations will have 36 work over rigs immediately operating in the Bakken.

Affiliates of Steel Partners Holdings LP owned approximately 40% of the stock of Steel Excel and 85% of the stock of BNS at the time the parties entered into the acquisition agreement. Thereafter, the Steel Parties acquired additional shares in the open market, as permitted by the agreement, and following the closing the Steel Parties own approximately 51.17% of the outstanding common stock of Steel Excel.