$1,750,000 - Lease maintenance operations business for sale in Canada
For Sale by Owner
Lease Maintenance Operations Business
(Well established business, in operation for 5 years)


DIVISION 2 - $1,750,000
Lease Maintenance Operations
INCLUDING the Pipe Laydown Business

The 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 than others.

Oil drilling rigs must keep operating regardless of weather.
This company makes sure that neither MUD nor SNOW get in the way.
This company has up to 550 Horsepower to pull you out of any mud bog.
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.

Lease Maintenance
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.

The 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: www.snopes.com/politics/gasoline/bakken.asp.

Pipe Laydown Operation

The purchase of this business includes 2 pipe laydown machines, 2 picker trucks, pipe 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 requirements:

  • 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 equipment.
  • 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 go.
Earn much more than 25% return on investment.

Pipe Laydown Machine History:
Laying down pipe to transport oil was inspired by need. During world war 2 the Big Inch project moved oil to the East coast of the US. The British had two machines and men to lay down the pipe to move oil to supply the allied armies in France following D-Day landing. The idea of using machines to lay down the pipe has recently been accelerated by the Bakkan field and the shale deposits across North America.
Transport crew and equipment to job site
Supervise and help with rigging up and down of PU/LD machine
Fill out and complete all field delivery tickets, time sheets, and repair tickets
Visually inspect equipment before, during, and after a job to ensure field readiness and safe operation of equipment
Roll or stack drill pipe and casing
Know and understand Weatherford Quality Policy and comply with all requirements of the Quality Systems Manual, Operating and Technical Procedures and Workplace Instructions.
Must understand and comply with all safety rules and company policies of Weatherford.
Work assignments carried out to the highest quality level.
Perform various other duties and activities as assigned by supervisor within the physical constraints of the job.
Note: Operate pickup and laydown machine and other duties relating to pickup/laydown machine.

www.intactinsurance.com/business-insurance-alberta.html www.sunrisepublish.com/saskbusiness_magazine/

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.

This equipment 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 pipe.

Description of a Move:

  • Make sure everything is loaded in the yard:
    • pipe racks
    • blocks/pads
    • limber for tiering (to fit between the layers of pipe)
  • Moving to well site:
    • 2 man operation to move
    • Licensing required
      • Class 1A for the trucker
      • competent operator certification for knuckle crane
    • no flagmen required
    • follow Transport Canada guidelines
  • Setting up at the well site:
    • obtain instructions from the consultant/field representative from the oil company who makes sure all of the work is done to specifications
    • get the equipment set up in the correct position
    • pad the outrigger legs and unhook from the truck
    • position the truck with the knuckle crane
    • unload and set up pipe racks perpendicular to lay down machine
    • Get final approval from consultant and head back to the yard

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 experience.

For more information, please call:
(403) 879-1172


DISCLAIMER: Listings on www.pin.ca are private offerings and the sale of any investment unit listed on this website has not been qualified, endorsed or recommended by any Federal, Provincial or Securities agency or commission. Do your own due diligence with the help of licensed, professional lawyers, accountants and investment counsellors. Do not rely upon this, or related websites, for investment advice. We try to provide quality information, but we make no claims, promises or guarantees about the accuracy, completeness, or adequacy.

This Page Last Revised
 September 21, 2014

E-mail Eric Jordan
©PinServices Ltd. 2013

to find out how you can advertise
your home or business on www.pin.ca

This page has had
people visit so far!