Ensign Energy Services Inc. (ESI.T) will boost its presence in
the southern U.S. market through an agreement to acquire Rowan
Cos.' (RDC) land-drilling division for US$510 million plus working
capital.
The oilfield-services company said the purchase price is payable
in cash and will be funded its existing working capital, available
lines of credit and a new term facility of up to US$400
million.
The assets being acquired include 30 deeper capacity electric
land- drilling rigs, all of which are equipped with top drives. The
fleet is well suited for extended-reach drilling in the oil and
natural gas resource plays of Texas, Louisiana, Alabama and
Oklahoma, Ensign said.
Calgary-based Ensign said the assets will complement its
existing U.S. operations in the Rocky Mountain region and
California. The purchase will increase its global fleet to 340
marketed drilling rigs, including 115 drilling rigs in the U.S.
Ensign reported revenue of just over C$500 million in the first
quarter.
-By Carolyn King, Dow Jones Newswires; 416-306-2100;
carolyn.m.king@dowjones.com