Spartan Flow Control - Formation and Capitalization

THE TRANSACTION:
Founders Investment Banking, LLC (“Founders”) advised the shareholders of Spartan Energy Services, LLC (“Spartan Energy”) on the formation of Spartan Flow Control Services, LLC (“Spartan Flow Control”).

THE COMPANY:
Spartan Energy is a growth-focused energy services company serving the major oil and natural gas markets in North America.

THE SITUATION:
In April 2010, Founders advised on the formation of Spartan Energy so that a group of industry veterans led by Delmar Crochet could capitalize on the recent industry downturn and enter the market as a well-capitalized independent operator. Doing business as Spartan Thru Tubing Services, LLC, Spartan Energy began providing fishing and milling services at new well interventions in the major shale plays across North America. The company deployed the right people and the right tools in the right markets and gained traction quickly. They captured valuable market share and createdsignificant value in only one year of operations, and the shareholders of Spartan Energywanted to expand the company’sservice offerings to include flow control services and retained Founders to advise on the formation and capitalization of Spartan Flow Control.

THE SOLUTION:
Founders provided a suite of advisory services and facilitated the successful formation of Spartan Flow Control. Founders will play an ongoing advisory role and serve on the company’s Board of Advisors. The Founders process generated the following results:

• Built a comprehensive funding model
• Determined the amounts and timing of internal and external capital requirements
• Advised on the drafting and execution of the necessary legal documents
• Enabled the company to deploy people and equipment in a timely manner