The purchase includes a stand-alone snubbing rig and a rig assist snubbing unit that can be converted to stand alone, along with assorted support equipment, which can be used in all facets of well construction. The purchased units are completely compatible with High Arctic's existing fleet of 28 rigs. As announced in October 2005, the fleet will grow by five rigs with the scheduled delivery of new 250K Underbalanced drilling rigs in May of this year, and an additional 10 250K Underbalanced rigs to be delivered by May 2007.
"This transaction further consolidates our strong position in the stand-alone market," said Jed Wood, President and CEO of High Arctic. "These rigs will be immediately accretive to our income. Once we have completed their current commitments, we will be able to deploy them against our pending customer requests."
Under the terms of the transaction, High Arctic will utilize existing cash and credit facilities to acquire the assets of Kamber Well Service Ltd. for $4.65 million. High Arctic estimates the assets will contribute approximately $1.5 million in additional EBITDA in 2006.
High Arctic Energy Services Trust, through its subsidiaries, is a global provider of underbalanced oilfield equipment and services, including drilling, completion and workover operations. High Arctic's new underbalanced drilling technology and equipment is recognized for its ability to improve oil and gas production capabilities and is expected to develop greater acceptance in international markets. Based in Red Deer, High Arctic has domestic operations in Alberta, British Columbia and the Northwest Territories. International operations are currently active in the Middle East and former Soviet Republics.
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