$36 Million Deal via Signed Letter of Intent to Acquire and Expand High Value Energy Assets from Vivakor, Inc. Serving the Oklahoma STACK Play: Olenox Industries Inc. (Nasdaq: OLOX)
$OLOX to Gain Assets Positioned to Generate Fee-Based Cash Flows, Reduce Costs and Provide a Scalable On-Ramp for Technology and Services
Energy Company Focused on Acquiring, Operating and Scaling Businesses in Engineered Solutions Across Industrial, Energy and Infrastructure Markets.
High-Quality Containerized Systems Designed for Rapid Deployment and Long-Term performance.
Two Exceptionally Experienced Business Executives Appointed to Board of Directors.
Letter of Intent Signed to Acquire Vivakor’s Midstream Business Assets in Oklahoma STACK Play for Deal Valued at $36 Million.
Acquisition Will Expand Presence in the STACK While Positioning Assets for Continued Development Under an Integrated Operating Model.
Commenced The Process of Recommissioning 162 Miles of Pipe as a Wet Gas Pipeline as Both a Producer of Natural Gas Liquids and Dry Gas.
Additional Intent to Utilize Surplus Dry Gas as Feedstock for Containerized Generator Sets to Produce Base and Peak Power Into the Grid.
Olenox Industries (Nasdaq: OLOX) is a multifaceted energy company focused on acquiring, operating, and scaling businesses that provide engineered solutions across industrial, energy, and infrastructure markets. Through its subsidiaries, including Giant Containers, OLOX delivers high-quality containerized systems designed for rapid deployment and long-term performance.
On February 13th OLOX announced that it has reached a mutual settlement agreement with Cedar Advance LLC, resolving the outstanding amounts owed to Cedar pursuant to the Standard Merchant Cash Advance Agreements between the Company and Cedar.
Olenox Industries Appoints Erik Blum and Adam Falkoff to Board of Directors
On February 10th OLOX announced the appointment of Erik Blum and Adam Falkoff to its Board of Directors to fill vacancies.
Erik Blum currently serves as Chief Executive Officer of Fynntechnical Innovations Inc. and has more than 30 years of experience in corporate finance, debt markets, and public company management, including extensive experience in equity and structured finance. He has served as chief executive officer, chief financial officer, and director of multiple public companies and has been instrumental in guiding corporate restructurings and operational turnarounds.
Adam Falkoff has more than 20 years of experience in public policy, international relations, and business development. He has advised Fortune 100 companies, as well as Presidents, Prime Ministers, Cabinet Ministers, and Ambassadors. Mr. Falkoff is President of CapitalKeys, a bipartisan global public policy and strategic consulting firm. He has held senior leadership roles at Microsoft and Amazon and has served in senior positions within the U.S. House of Representatives, the U.S. Senate, and the Executive Branch.
Letter of Intent Signed to Acquire Vivakor’s Midstream Business in Oklahoma STACK Play
On January 29th OLOX announced that it has executed a non-binding Letter of Intent to acquire the midstream business and transportation assets of CPE Gathering MidCon, LLC from Vivakor, Inc. (OTC: VIVK), owner and operator of the Omega pipeline system, an integrated crude-oil gathering, transportation, terminaling and pipeline connection platform serving the Oklahoma STACK play.
The transaction, valued at approximately $36 million, will be paid in a combination of OLOX cash, promissory note, common and preferred stock, and is based on $4.56 million in annual EBITDA, pursuant to a take-or-pay guarantee of Vivakor.
“Integrated midstream platforms like CPE Gathering generate durable, fee-based cash flows and provide critical infrastructure in established producing basins,” said Michael McLaren, Chief Executive Officer of OLOX. “The proposed acquisition of Vivakor’s Oklahoma midstream business would expand our presence in the STACK while positioning these assets for continued development under an integrated operating model.”
CPE Gathering operates the Omega system, an on-basin midstream platform that provides crude gathering, transportation, terminaling and pipeline connectivity in the STACK region of Oklahoma. Omega is positioned to generate fee-based cash flows, reduce hauling and terminaling costs for producers, and provide a scalable on-ramp for technology and services that improve uptime and lower operating expenses. The transportation assets also offer producers flexible, cost-competitive gathering and transport to a network of storage and blending facilities and pipeline injection points.
OLOX is executing an acquire-and-integrate strategy that elevates core brands to build an integrated energy, technology and infrastructure platform. Acquiring CPE Gathering from Vivakor would complement that strategy by expanding the OLOX addressable market for services, increasing fee-based, predictable revenue through integrated gathering and terminaling (thereby reducing exposure to commodity volatility), and generating operational synergies by aligning midstream logistics with OLOX field services to lower per-well costs and improve uptime.
Recommissioning of Pipeline
On January 27th OLOX announced it has commenced the process of recommissioning its 162 miles of pipe as a wet gas pipeline. The recommissioned pipeline will be both a producer of NGLs (Natural Gas Liquids) and dry gas. NGLs are high-value products commonly used in blending lower grade crude through the midstream markets. The dry gas will be sold into the open market and open contracts.
OLOX also intends to utilize the surplus dry gas as feedstock for its containerized generator sets to produce base and peak power into the grid.
For more information on $OLOX visit: https://olenox.com/
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