Wellco Energy Services Trust and Central Alberta Well Services Corp. have entered into an agreement for the purchase and sale of the assets of Wellco's Service Rig Division for total cash consideration of $11.31 million. (Wellco previously sold equipment from this division to another party for proceeds of $190,000, for total proceeds of $11.5 million.)
The transaction is expected to close on January 7, 2008, with all net proceeds being applied to the reduction of long-term debt. Results for this group of assets have been reported under the Production Services division.
This disposition forms part of the Wellco's ongoing assessment and review of its product lines with the objective of improving unitholder value and enhancing opportunities in the Trust's core businesses. This transaction will in no way delay or otherwise affect the previously announced merger involving Wellco and Peak Energy Services.
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