Hart Oilfield Rentals, a recently acquired subsidiary of Enterprise Group, has renewed its master service agreement with Canada’s largest natural gas producer. The contract is valued at $19.2 million and is for a term of two years, after previously renewing on a single-year basis. The agreement calls for a commitment of a steady supply of equipment for rent as well as labor.
The contract will utilize all of Hart’s existing equipment lines including light towers, wellsite, fuel tanks, scaffolding systems, combo units and more. The agreement also provides for transportation and set-up of units.
Hart’s ability to fulfill the demands of the agreement is a result of Enterprise Group’s capital expenditure program for 2014, utilizing proceeds from its recent $27.6 million financing, completed in March. A $10 million portion of the capital has been devoted towards equipment purchases for Hart, which will be completed by October, Enterprise said.
“The acquisition of Hart has allowed Enterprise to establish a position as a rapidly emerging player within the oilfield services industry,” said Leonard Jaroszuk, Enterprise’s president and CEO. “While Hart’s contribution to our business was clearly evident within our recent first quarter results, its true value will be demonstrated by contracts like this one.”
Enterprise also announced that the company recently took delivery of six new hydro-vac units, bringing its fleet of owned units to 14. The company confirmed delivery dates for 12 more hydro-vac units over the course of 2015.
Enterprise Group, a consolidator of construction services companies operating in the energy, utility and transportation infrastructure industry, specializing in equipment rental, is based in St. Albert, Alberta.