Turner Valley Oil and Gas, Inc., a company focused on acquisition of energy assets, entered into an agreement to acquire bitumen tanker assets from an international bitumen tanker shipping company, for a purchase consideration of US$28 million.
The assets include five bitumen oil tankers with an average fleet age of eight years. The transaction enables Turner Valley to expand its fleet of tankers.
The completion of the transaction is subject to a number of conditions including completion by the company of the audits and SEC filings.
Steve Helm, CEO of Turner, said, “World asphalt supply and demand is expected to grow exponentially by 2020. With the White House’s recent proposal of $1 Trillion infrastructure investment in the United States, we are excited for the opportunity to capitalize on the dynamics of the shipping industry and build value for Turner shareholders during a time where asphalt trade is expected to rise both regionally and globally. The current U.S. administration has pledged to build new roads, highways and bridges across the country. Recent Energy Administration data shows that the U.S. will require 63% more asphalt than it consumes now just to pave roads at the rate it was at 10 years ago. As a result of this initiative, asphalt demand is expected to increase well beyond that level in the next 2-4 years, which makes the steady supply of bitumen so crucial to making the improving of America’s roads a success.”