OFS Energy Fund News

May 10, 2017

Terra Oilfield Services, LLC Acquires Delaware Basin Water Sources

Houston, Texas – May 10, 2017 – Terra Oilfield Services, LLC (“TerraOFS” or the “Company”) is pleased to announce that it recently closed two transactions in which it acquired water production rights and related infrastructure, including existing water wells and pits, in the Delaware Basin of west Texas. The acquisitions will allow TerraOFS to further expand on its existing water sourcing service line, through which the Company sells and delivers freshwater to its customers. TerraOFS has developed a robust network of proprietary freshwater sources, from which it began brokering water in early 2017 with the formation of its water sourcing service line.


TerraOFS closed the first transaction on April 11, 2017. Prior to the transaction, TerraOFS had been brokering water from the source. The transaction included exclusive water rights, significant existing water production from multiple water wells, and a large storage pit. Since closing the transaction, the Company has added new water wells to increase capacity and is considering adding additional wells to meet demand.


The Company closed the second transaction on May 2, 2017. The transaction included exclusive water rights, significant existing water production from multiple wells, and a strategically located storage pit. TerraOFS plans to expand production capacity and the size of the pit.


The transaction and subsequent expansions of capacity provide TerraOFS with multiple reliable sources of freshwater to service its customers in the Delaware Basin. TerraOFS continues to broker water from its strategic partners to meet surge capacity, therefore ensuring that it is able to satisfy its customers increasing demands. Additionally, the Company has water transfer assets, allowing it to provide both the source and the delivery of freshwater to the customers’ locations, reducing customer costs and logistics requirements.


“We are excited about the addition of these water sources, which will allow us to increase our ability to deliver freshwater across the Delaware Basin and to meet our customers’ growing water needs,” said TerraOFS CEO McGowin Patrick.


TerraOFS President Stan Peach said, “We are pleased that we were able to add two strategically located water sources in the Delaware Basin near several of our existing customers and look forward to continuing to add to our capacity.”


“OFS Energy Fund is pleased with TerraOFS’s ability to continue to differentiate itself and grow the business,” said Jerad McMayon, Partner at OFS Energy Fund. “The water sourcing acquisitions will allow the Company to expand on its existing water transfer and water treatment service lines, and become a true provider of water solutions to the oilfield.”


About Terra Oilfield Services
TerraOFS provides critical water transfer, water treatment and recycling, water sourcing services to the oil and gas industry primarily during the drilling and completion phases. TerraOFS is headquartered in Conroe, Texas and has operations across Texas, Oklahoma, and New Mexico. For more information, please visit www.terraofs.com.


About OFS Energy Fund
Houston-based OFS Energy Fund is a private equity firm that specializes in acquiring and recapitalizing lower middle-market energy service companies. OFS seeks to provide capital to business owners in the form of buyouts, recapitalizations and growth equity investments. The Fund supports the development of management, appropriate governance, professionalization of reporting and tracking of operating metrics. OFS currently has in excess of $300 million of committed private equity capital under management across its Fund II and Fund III. Additionally, OFS lends industry relationships, ideas for operational improvement and support in developing strategic growth plans and initiatives. For more information please visit www.ofsfund.com.


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