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Sept. 27, 2012 /PRNewswire/ - (TSX:MTL) Mullen Group Ltd. ("
Mullen Group" and/or the "
Corporation") announced today that it has entered into a memorandum of understanding ("
MOU") with two northern business partners to provide oilfield services, transportation and logistics services in the Sahtu Settlement Area in the
Northwest Territories ("
Sahtu Region"). The other two parties to the MOU are HCI Holdings Ltd. ("
HCI Holdings") and Red Dog Mtn. Contracting Ltd. ("
Red Dog") both of which are long standing organizations situated in
Norman Wells and
Tulita, Northwest Territories.
Mullen Group, through its operating subsidiaries, has extensive experience providing oilfield services, transportation and logistics services that has been earned through many years of working with and supporting northern aboriginal communities in conjunction with energy companies in
Northern Canada. Importantly, HCI Holdings and Red Dog are strategically located in key resource plays in the Canol Shale Oil Region where it is expected there will be significant investments made by energy companies in the responsible exploration and development of oil and gas fields over the next number of years.
The MOU contemplates the creation of Canol Oilfield Services Ltd., a stand alone company, with Mullen Group being a 45 percent shareholder and HCI Holdings and Red Dog combining to own the remaining 55 percent of the new entity. It is expected that Mullen Group's experience in servicing the energy sector and the investment of equipment, capital and leadership support will compliment HCI Holdings and Red Dog's strategic service offerings in the Sahtu Region and specifically support the responsible economic development of the Sahtu Region as outlined in the Benefits Agreements amongst Tulita District Land Corporations and various energy companies in the Sahtu Region.