DIVISION 2 - $1,750,000
Lease Maintenance Operations
INCLUDING the Pipe Laydown Business
philosophy of the company is simple:
Have unique pieces of equipment
that no one else in the area has.
Or, have BIGGER and BETTER equipment
Oil drilling rigs must keep operating regardless of
This company makes sure that neither MUD nor SNOW get in the
This company has up to 550 Horsepower to pull you out of any mud
The same 550 Horsepower will go through any snow drift and clear
the road where others fail.
The company also does "Sweeping" which
entails cleaning up the roads when muddy oilfield equipment uses paved roads
within the province. The company does lease maintenance, including
mowing the grass and getting rid of weeds.
Full equipment list and
work description details will follow.
$1,750,000 includes the
$900,000 Pipe Laydown business and equipment detailed above.
Oilfield Lease Maintenance is here to stay:
Bakken is proving to be one of the most prolific oil-producing patches in the
world. It continues to outstrip even the most optimistic forecasts.
In Canadian law surface rights and mineral rights are recognized as separate
property and can both be owned by the same individual, owned by different
individuals, or owned jointly by many individuals or companies. During the early
years of our countryís history, mineral rights were generally sold with the
land. As minerals of value were discovered, the government began retaining
mineral rights and withdrawing them from future sales. Now it is quite common
for the surface rights to have one owner while the mineral rights belong to
other individuals, state governments, the federal government, foundations,
Indian nations, counties, cities, banks, land grant universities, or some other
owner. They may even be owned by an entity in another country.
surface rights may also be owned by the state, the federal government, an Indian
nation, others, or a combination of these. The owner of the surface rights or
the landowner has the right to use the surface of the land. The landowner also
has the right to fence the land, control the use of the surface, and control
access to the property. In some cases, the persons residing on the land may not
own it but may be lease tenants. The surface rights of some government-owned
land are leased under long-term agreements. Often families have lived on land
under this type of lease agreement for several generations and have much of
their wealth invested in land improvements. When the mineral rights are leased,
the landowner or lessee will receive payment for any damages caused by
exploration for minerals.
The mineral rights owner or lessee has the
right to search for minerals under most of the land. Before the first well is
drilled, the owner or lessee of the mineral rights must reach an agreement with
the surface rights owner, generally involving payment of a sum of money to
compensate for the use of a part of the land. This includes not only the areas
on which wells and equipment are located but also land for access roads. This
agreement is usually in force for as long as the wells are being produced. As
additional wells are drilled, additional fees will be paid for damage to the
land and for the loss of income from land involved. When the hydrocarbons have
been depleted and the last well has been plugged and abandoned, the lease to
enter the property and the right to use the existing roads and locations usually
expires. The land reverts back to the land surface owner, and the lease operator
must withdraw from using these facilities in compliance with the original and
subsequent land use agreements. A landowner who does not own any of the mineral
rights and who will not receive any further compensation for the loss of the
land may not feel too friendly toward the lease operator. The landowner may
prefer to maintain privacy and may feel invaded. For this reason, the lease
pumper, as the lease operatorís representative, must try to maintain good
relations with the landowner.
At the moment the industry has completed just 5,000 wells in the Bakken at an
average spacing of less than one well per 1,280 acre unit. Continental
estimates the core could support up to 52,000 wells with four to eight wells per
1,280 acre unit for full development.
Bakken contains about 577 billion barrels of oil and gas, of which about 24
billion barrels should be technically recoverable, according to Continental. Underneath Bakken, in the same area, is the Three Forks formation, which
Continental believes could contain an even greater 900 billion barrels, of which
perhaps 32 billion barrels might be technically recoverable.
The Bakken Oilfield is big. There are some myths and some facts; you may want
to read some of the information in the following link:
Pipe Laydown Operation
The purchase of this business includes 2 pipe laydown machines, 2 picker
racks and the associated equipment required to operate the business. A detailed
equipment list will be added when available. Please contact seller
with any questions.
The company has a very detailed Operations
Manual. This will help to ensure that a business person, not currently
operating in the oil industry, could
effectively run this business and continue to operate it profitably.
We feel that this business meets all of the requirements for immigrants
wanting to buy a business and immigrate to Canada.
If a business owner/manager wanted to add $1,000,000 in equipment and hire
an operations manager, they could 'manage' and not have to get their hands
dirty. Yes, operations managers are available. Seller will
help you with this if necessary.
Here are some of the basic
- Having management and engineering background would
be a great asset.
- Access to cash; Under $1,000,000 to start, but if
you plan to manage only, and not get your hands dirty, you should have
$2,000,000 so you can buy additional equipment and make the company more
profitable. The work is here and it's expanding.
- Self Starter
- Mechanical ability to understand the maintenance
of the machinery.
- Knowledge of how to operate larger pieces of
- Class 1A drivers
license would be useful.
- Half day course for Knuckle Crane
Competent Operator Certification.
- H2S Ticket - 8 hours
- First Aid - 16 hours
- WHMIS - 3 hours
If you have the money and
knowledge of the machinery you would need less than one month of study to get a
good understanding of how the oil patch works. This would make you
eligible to own this business.
To buy the business and operate without
getting dirty would require another Million dollars in more equipment.
The seller will be available for consultation to get you where you want to
Earn much more than 25% return on investment.
What We Do:
After a well is drilled the service rigs come in
and complete the work and bring the well into production.
Preparing for Fracking:
The Pipe Laydown machine allows for this to happen in a safer and more efficient manner,
saving money though safety savings as well as speed of operation. In addition, there is less damage to tubing,
resulting in even more savings.
The unit is a totally
self-sufficient, hydraulically operated unit that has it's own
hydraulic system, powered by its own diesel powered hydraulic pump.
Good unit to be used when Snubbing, as unit can reach heights as high
as 40' or as low as 12'.
In addition, the unit can
be used for both laydown of pipe and for feeding pipe to the service
rig for pipe installations.
The company delivers and sets up the equipment, ready to use.
The service company runs the equipment in most cases, but operators can be provided.
Once the arrangement is made with the client timing, a schedule is set up and the men and
equipment are put in place for the move.
helps to eliminate the physical handing of pipe by rig site workers,
thereby helping to reduce possible injury to workers such as back
injuries from lifting, slip and fall dangers while carrying pipe,
dropping pipe, or pinch fingers/limbs while handling. It is much
safer for workers as well as being more gentle in handling expensive
Description of a Move:
At the end of the job, the setup process is reversed.
Daily fees start from the day the machine starts work and are charged
based on days of use. There are no half days, either you used it
or not. Usage varies but on average 3 to 5 days on a job.
Policing the usage is a combination of knowing what is needed and past