Precision Drilling Corporation has announced that it has entered into an agreement to swap its Canadian Coil Tubing operations for Essential Energy Services' service rig business. In addition to the swap of assets, Precision will make a cash payment of CAN$12 million to Essential. The transaction is expected to close on 16 December, 2016.
Kevin Neveu, Precision's President and Chief Executive Officer stated, "This is a strategic transaction to divest a business line in which Precision lacks scale to generate the returns we expect and follows similar Precision divestitures of our US trucking and US coil tubing businesses in 2014. The acquisition of Essential's service rig business is a unique opportunity to expand our leading well service position within the Canadian market by adding the high quality assets and people of Essential's service rig operations. We believe the combination has the opportunity to strengthen our existing business and create synergies. We look forward to welcoming the Essential service rig personnel to our team and continuing to provide high performance, high value services to our expanded base of customers."
RBC Capital Markets acted as a strategic advisor to Precision on this transaction.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13122016/precision-drilling-corporation-to-swap-coil-tubing-operations-for-essential-energy-services-service-rig-business/