Thomsons acts for Titan on purchase of Hofco

7 February 2013

News

Thomsons Lawyers has acted for Titan Energy Services Limited (ASX:TTN) on the acquisition and funding of Hofco Oil Field Services for approximately $21.7 million on a cash and debt free basis.

Partner, Eugene Fung led Thomsons’ team on this transaction with support from Special Counsel, Greg Clifton and Lawyer, Siew Mei Fagan.

The purchase of Hofco Oil Field Services is Titan’s largest acquisition to date and is consistent with the company’s strategy of targeting other services in the coal seam gas (CSG) industry.

The acquisition will be funded by a combination of equity and operating cash flow including approximately $7.0 million from a non renounceable entitlement offer at an issue price of $0.95; approximately $11.0 million placement to institutional and sophisticated investors at an issue price of $1.05; and the remainder from operating cash flow.

Titan Energy Services is an oil and gas field services company focused on the rapidly growing CSG to liquefied natural gas (LNG) industry in Queensland.

Hofco Oil Field Services is a market leading directional drilling equipment and down hole tool rental provider, currently focused on the CSG sector in Queensland.