Trican hit hard by low oil price, negotiating to sell US fracking business

Trican has 2,400 to 2,500 less staff compared to 2014, mostly in North America

CALGARY, Alta- Trican Well Service Ltd. has announced that it is in negotiations with Keane Group, a privately-held, US-based well completion services company, for the sale of its American fracking business.

Photo: Trican Well Service.

Trican was negotiating the sale of its Kazakhstan operations to Rosneft Oil Co., which bought its Russian pressure pumping business for $197 million in Aug.

Although talks are progressing, significant terms and conditions are still under negotiation, Trican said in a press release. The company says there is “no guarantee” it will be successul.

Trican reported US operations suffered an adjusted operating loss of $14 million compared to a gain of $20 million a year ago in the quarter. Pricing was down 30 per cent from peak prices at end of 2014.

Trican said in Sept. it had 2,400 to 2,500 less staff compared to a year earlier, mostly in North America. It laid off about 1,600 staff earlier last year, then had another 30 reductions at head office.

Based upon the terms and conditions currently being discussed, management believes the offered price represents fair value for the American business and that the sale of this business would be “in the best interest of shareholders” if acceptable terms and conditions can be negotiated.

Trican shares closed Tuesday at 39 cents, up two cents. Its stock has ranged from 33 cents to $5.84 in the past year.
Trican will not be providing any further public statement regarding this transaction until a definitive agreement has been executed or the negotiations have been abandoned.