Precision Drilling Acquires High Arctic’s Well Servicing and Rentals Divisions for $38.2 Million
[Click image to enlarge]
Precision Drilling Corporation has entered into an asset purchase agreement to acquire the well servicing business and associated rentals assets of High Arctic Energy Services Inc. for an aggregate purchase price of $38.2 million, payable in cash.
“This acquisition significantly expands our well servicing division with high quality rigs and field personnel, strategic regional positioning, and alignment with key customers. High Arctic’s people are well known for their focus on safety and field execution and will complement Precision’s high performance, high value operating strategy. The transaction accomplishes needed consolidation in the well servicing industry, providing greater opportunities for our combined team, while bolstering service capabilities for our customers,” said Precision’s President and CEO, Kevin Neveu.
Precision adds to its Canadian well servicing operation a fleet of 80 service rigs (51 marketed and 29 inactive). The transaction provides Precision with rental assets, ancillary support equipment, inventories and spares, and six additional operating facilities in key basins, four of which are owned.
Additional transaction highlights include:
• Acquisition of high-quality assets with skilled and experienced field personnel and a strong customer following
• Combined business will have marketed fleet of 134 service rigs and represents approximately 20 percent of
Canadian industry well service activity
• Leverages Precision well services’ leading operational scale, generating significant synergies including
expected annual operating cost savings of $5 million annually, realizable within one year
• Accretive acquisition that supports Precision’s long-term capital allocation and de-leveraging plan through
increased cash flow generation
About Precision Drilling
Precision is a leading provider of safe and environmentally responsible high performance, high value services to the energy industry, offering customers access to an extensive fleet of super series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as “Alpha™” that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel. Precision is headquartered in Calgary, Alberta, Canada.
To stop by Precision’s website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2022 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
