Hill Technologies, an oilfield services company based in Houston, with operations in Texas and Oklahoma, has launched an operating division to focus on providing onsite portable power to exploration and production companies where power-grid connectivity is lacking. The new division, South Texas Power, will acquire an inventory of mobile diesel and natural gas-powered generators and related equipment for rental to its customers. Its rental strategy will be managed by experienced industry personnel in Texas and Oklahoma, the company said.
In connection with the launch of STP, a non-binding letter of intent was executed with Power Reserve Corp., a privately held corporation, to create a strategic alliance providing capital for equipment. Under the joint venture agreement, PRC will fund the purchase of up to $3 million of equipment comprising STP’s rental inventory, with an initial equipment purchase of $1.2 million. STP will rent this equipment to its oilfield customers on a negotiated day-rate rental basis. Revenues will be shared between STP and PRC.
“In many cases, drilling locations are not close to a power source; obtaining needed power in the field becomes logistically challenging making portable onsite power generation critical to drilling operations,” said Matt Fleming, CEO of Hill Technologies.