Asking Price: $22,000,000

Cash Flow: $4,697,372

The oil business is booming and service companies are where the money is. This Wellhead company has great numbers and full staff of Office, Shop, Warehouse and Field Technicians in place and able to run the business for the new owner. Great opportunity for the right independent business person, or a fantastic acquisition opportunity for other Oil Field, or Venture Capital Group. Located in the Williston Basin of North Dakota in the heart of the Bakken Formation find. Cash flow for the current trailing 12 months is 60% of Gross Revenue (Gross $7.8M / Net Cash Flow $4.7M). See 6 year trend lines, this has been a profitable business for a long time and is expected to continue this growth into the future. See Market Competition and Expansion info below. Current industry valuation method would put the price on this business at $25,850,000. Asking price $22,000,000, financing available for financially capable candidates.

Year Established: 1986

Employees: 12 full time -

Facilities: Current facility is located on 3.5 acres with 3 buildings. Total enclosed space equals 16,000 square feet, although current owner may be adding another 10,000 square feet soon to keep pace with the market. Service vehicles are all new. Equipment is mostly new and all well maintained. Inventory is fresh and turns quickly. Included at no additional charge is bone yard comprised of estimated $300,000 to $500,000 of used valves and fittings. Located on main highway, in the heart of the Bakken find.

Market Outlook and Competition: The United States Geological Survey (USGS) issued a report in April 2008 that only scientists and oilmen knew was coming. It was a revised report (hadn’t been updated since 1995) on how much oil is in the area of the Upper Devonian-Lower Mississipian Bakken Formation in the US portion of the Williston Basin of Montana and North Dakota. The USGS assessment shows a 25-fold increase in the amount of oil that can be recovered compared to the agency’s 1995 estimate of 151 million barrels of oil. The USGS assessed undiscovered oil and associated gas resources in five continuous (unconventional) assessment units AU and one conventional AU for the Bakken Formation. For continuous oil reserves the USGS estimate of 3.0 to 4.3 billion barrels of technically recoverable oil has a mean value of 3.65 billion barrels of oil. New geological models applied to the Bakken Formation, advances in drilling and production technologies and recent oil discoveries have resulted in these substantially larger technically recoverable volumes. About 105 million barrels of oil were produced from the Bakken Formation by the end of 2007. The Bakken Formation estimate is larger than all other current USGS assessments of the lower 48 states and is the LARGEST “CONTINUOUS” OIL ACCUMULATION EVER ASSESSED BY THE USGS. In other words, this is a great place to grow an oil service like this one!

Reason For Selling: Retire