SMG Industries, Inc. Announces Corporate Alliance with Christopher Equipment and Rentals LLC

For marketing and sales of SMG’s downhole oil tools in the Permian Basin

HOUSTON, TX and ODESSA, TX / ACCESSWIRE / February 28, 2019 / SMG Industries, Inc. (OTCQB: SMGI) an oilfield services company headquartered in Houston, Texas announced today that it has established a corporate alliance through the execution of an exclusive rental agreement with Christopher Equipment and Rentals, LLC (“CER”) of Odessa, Texas. Under the terms of the agreement, SMGI will contribute its 850 down hole oil tools which include steel and non-mag stabilizers, roller reamers, collars, bit subs and crossovers to CER for its exclusive use to rent these bottom hole assembly (BHA) tools to directional drillers and other oilfield customers in the Permian Basin.

Additionally, John Christopher, President of CER, will also contribute approximately 400 of similar oil tools from an affiliate business to CER to create a broad offering of down hole rental fleet for customers to use in their unconventional drilling applications. As a marketing and rental partner to SMGI, Christopher Equipment and Rentals will manage all aspects of the down hole tool business including sourcing customers, delivering rental oil tools, repair and customer service.

Matt Flemming, the Chief Executive Officer of SMGI, stated, “We are pleased to have this corporate alliance with Christopher Equipment and Rentals and utilize the relationships built in the Permian Basin by its principal John Christopher. This alliance and agreement allows SMG to focus on its growth plans while benefiting from CER’s relationships in active West Texas market.”

John Christopher, President of Christopher Equipment and Rentals LLC., stated, “Through this relationship with SMGI, we believe CER can offer customers one of the larger inventories of down hole rental tools available in the Permian Basin. Through my history of manufacturing and repairs of BHA oil tools, I have developed customer relationships that should assist us in market awareness. We believe that this alliance represents a win-win scenario for us.”

Through this agreement, CER will pay a royalty on rental revenues to SMGI the amount of which was not disclosed publicly. The agreement is for three years, with permission based extensions possible, and requires minimum royalties be made to SMGI to preserve the agreement’s exclusivity.

About SMG Industries, Inc.

SMG Industries is a rapidly growing oilfield services company that operates throughout the Southwest United States. Through its wholly-owned operating subsidiaries, the Company offers an expanding suite of products and services across the market segments of drilling, completions and production. MG Cleaners LLC., serves the drilling market segment with proprietary branded products including detergents, surfactants and degreasers (such as Miracle Blue®) as well as equipment and service crews that perform on-site repairs, maintenance and drilling rig wash services. SMG’s rental division includes an inventory of 850 bottom hole assembly (BHA) oil tools such as stabilizers, drill collars, crossovers and bit subs rented to oil companies and their directional drillers. SMG’s frac water management division, known as Momentum Water Transfer, focuses in the completion or fracing market segment providing high volume above ground equipment and temporary infrastructure to route water used on location for fracing. SMG Industries, Inc. headquartered in Houston, Texas has facilities in Carthage, Odessa and Alice, Texas. Read more at www.SMGIndustries.com and www.MGCleanersllc.com and www.MomentumWTS.com.

Contact:

Matthew Flemming, SMG Industries, Inc. +1-713-821-3153

SOURCE: SMG Industries, Inc.

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