Lafayette-based RedHawk Energy Corp. sold its Texas oilfield services operations for approximately $66 million.
Lafayette-based RedHawk Energy Corp. sold its Texas oilfield services operations for approximately $66 million in cash, assumed bank indebtedness, certain equity securities and other consideration.
RedHawk acquired the Texas-based oilfield service operations in late 2009, returning the business unit to profitability and dramatically improving cash flow from its operations. "The improved cash flow allowed us to significantly reduce bank indebtedness, which then positioned us for a sale of the business unit," said G. Darcy Klug, founder of RedHawk, in a prepared statement.
Klug, who is resuming duties as the company's chairman of the board and chief executive officer, said the sale resulted in investment and cash returns in excess of RedHawk's original objective. "With completion of this sale, we will now direct our investment focus on Louisiana-based business opportunities," he said, noting that the company is already working with representatives from the Lafayette Economic Development Authority to evaluate investment opportunities.
RedHawk Energy Corporation was founded in 2008 to focus on acquiring and consolidating well-managed, smaller, undercapitalized onshore and offshore oilfield service and equipment companies. Its common stock is registered with the Securities and Exchange Commission, but the company is not currently trading its common stock.