The acquisition will help Steel Excel perform in the Williston Basin in North Dakota owned by Sun Well Service.
Well Services, a wholly owned subsidiary of Steel Excel, will join forces with the newly acquired company and together will operate in the facility of Williston Basin in North Dakota under the name Sun Well as guided by the of the current management team of Sun Well.
The Sun Well operations will also have 36 work over rigs immediately operating in the Bakken basin.
The debt of about $17.6m owed by Sun Well will remain outstanding.
Steel Excel identifies and acquires profitable business operations in which it can utilize its existing working capital and maximize the use of itsnet operating losses.
Sun Well is a provider of well services to oil and gas exploration and production companies operating in the Williston Basin in North Dakota and Montana.
