CALGARY — Precision Drilling Corp. has signed a deal to buy the Canadian well servicing business of High Arctic Energy Services Inc. for $38.2 million in cash.
The deal adds to Precision’s fleet of service rigs as well as includes rental assets, ancillary support equipment, inventories and spares, and six additional operating facilities in key basins.
Precision CEO Kevin Neveu says the acquisition expands the company’s well servicing division with high quality rigs and field personnel as well as strategic regional positioning.
He says High Arctic’s people are well known for their focus on safety and field execution.
Under the agreement, Precision will make an initial payment of $10.2 million at closing, with the remaining balance due in January 2023. The transaction is subject to customary closing conditions and is expected to close before the end of the month.
In a separate statement, High Arctic also says it has signed a deal to sell its Canadian snubbing business to Team Snubbing Services Inc. in an agreement that values the assets at $11.1 million.
This report by The Canadian Press was first published July 18, 2022.
Companies in this story: (TSX:PD, TSX:HWO)
The Canadian Press