Alberta’s first oil well was drilled in 1902, turning into an industry that generates roughly 24% of the province’s GDP. This leaves many locals wondering: will Alberta see another oil boom? Recently, RISE Capital spoke with Chris Anstey, President and CEO of HYJACK Energy Services, to learn more about the entrepreneurial journey and see what advice he had to share with others on similar excursions. HYJACK is a well services company, providing leading well services rig technology that can reduce costs for oil companies by up to 30%. This company, just three years into its existence, is innovating an industry that can often get stuck in the past. This is their story.
“The industry needed a change. We had an idea. There were lots of trials and tribulations to get here and this is, by far, the hardest thing we have ever done. But, it has been the best experience, and it’s hard to go back to working for someone else.” – Chris Anstey
The HYJACK Method
Chris Antsey is an oil and gas guy from the ground up. He moved from Ontario to Alberta to work the rigs, and after a few years of life on site, he went back to school, ready for his next career step in the oil and gas industry. That is where he met his current business partner, Travis Stahl. After school, they worked at the same well service companies in various positions, growing their careers, and hard-won experience taught them an important lesson: to keep a company growing despite industry challenges, they needed to provide the most value to their customers. Small ideas of innovation were tossed around in conversations over coffee.
Chris and Travis recognized a gap in well services that, with the right solution, could generate value for an industry that needed more innovation to thrive. This is where the idea for HYJACK Energy Services was born – what if a well servicing rig could be created like a Swiss Army knife? One piece of equipment, to complete multiple services? It was with that idea that they quit their jobs and became entrepreneurs.
“I quickly realized that:
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It is important to have the right advisory and organizational processes in place; and
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It is extremely capital intensive to get something like this built.” – Chris Anstey
After receiving the initial funding in 2018 and with the interest of a major E&P they engineered and began building HyJack Well Servicing Rig #1. Chris and the team raced against time to deliver the first HYJACK well servicing rig – but, as 2020 rolled in and the COVID-19 pandemic unfolded, the project was threatened with an indefinite hiatus.
“We thought that the project might be stalled because of the economy, but the oil company we are working with came back and said, ‘We need this more than ever.’ Our well services rig was exactly what they needed because there was less exposure to third party services, [and] therefore, less exposure to COVID-19…we began operating in the field June of 2020”
The RISE of HYJACK
Chris and HYJACK were in search of a financial partner that could support them from formation to growth. While the team worked away on testing and operating the HYJACK well servicing rig, they were realizing that cash was often strapped, even with the partner company paying invoices in 30 days.
“We had a joke. There are 1,000 service rigs in Canada, 80% of them are against a fence and we want to build more.” – Chris Anstey
Chris needed cash management solutions, but struggled to find the right fit – just like Goldilocks, he wanted this partner to fit with the future of the business in just the right way. Chris met Dan Ardiel and RISE Capital, through a mutual connection and. RISE offered a $500,000 revolving line of credit secured through accounts receivable as a financial solution to HYJACK’s immediate business needs as well as laying the groundwork for future rigs to be built and deployed.
“Their solution was the best one for our company. It was simple. It was a no-brainer. We saw value creation for the client a long time ago. When you call us, we are going to do the job for you. That is the whole point of this [business]. That is what RISE does for us. Their financial solution and attention to our needs allowed us to focus on what we needed to do,” said Chris.
“What RISE has, what made them the best partner for us, was a lot of real-life industry experience. They understood our operational challenges… RISE will be a partner for us for a long time. They allow us to sleep at night, and free up our cash flow when we need it.”
Hyjack the Future of Well Services
HYJACK has now completed the trial phase, generating proof of work for their hybrid well servicing rig. To date, this rig has been shown to reduce well servicing costs by up to 30%. Through this trial phase, they have been able to map the revolution of well servicing rigs, and now they are focusing on building their capabilities – with dreams to take this technology beyond Alberta borders and into international markets.
“There was not a time that could have been worse to start a company. But our solution must be in the right direction because interest and demand for our rig is ever increasing”– Chris Anstey
RISE Capital is dedicated to supporting Alberta businesses as they grow, and HYJACK is just one of many we have worked with. If you’re a business owner in this great corner of Canada, make sure you never miss an opportunity to capitalize on these insights. Subscribe to our monthly newsletter and keep your finger on the economic pulse of our province.
