Mullen buys another oil services carrier

CALGARY — The Mullen Group continues to pave the road of black gold with yet another acquisition of a western oil services fleet.

Mullen — an income fund that operates the third-most trucks in Canada — has signing of a letter of intent to acquire Pro North Oilfield Services Ltd. and Pro North Well Management, based in Fort Nelson, B.C.

Financial details of the all-cash transaction were not disclosed.

Pro North owner Marshall Ellis will stay on to
oversee the company’s operations for Mullen.

Pro North is a 16-year-old oil services and hauling provider, which operates a fleet of about 20 tank truck-trailer combinations and employs 25 people.

Pro North will be added to Mullen’s oilfield services segment and will be operated as an independent business unit in the Formula Powell group.
Owner Marshall Ellis is described as a leader in the regional business community. He will remain with Pro North to oversee its day-to-day operations.

“We are pleased to add Pro North’s fluid transportation capabilities to our growing fluid business. It is a strong and well-run company that we expect will work closely with our Formula Powell group. Pro North has been in business for almost 17 years and has built an exceptional reputation for providing outstanding service to their customers in the Fort Nelson area,” stated Stephen H. Lockwood, Mullen president and co-CEO, adding that the acquisition reaffirms the carrier’s strategic plan of expanding its fluid transportation business.

“In the years to come we are optimistic that Pro North will be able to grow its business and expand on their prior year’s revenue of approximately $10 million and to continue to produce respectable operating margins in a range consistent with similar business units in the Mullen organization.”

The transaction is expected to close by the middle of October 2007.