Ensign Energy Services Inc.’s wholly owned partnership, Ensign Drilling, has entered into an agreement for the acquisition of all of the drilling rigs and related equipment of Terracore Specialty Drilling Ltd.
Terracore is a privately held Alberta based company with 12 specialty drilling rigs that are designed for coring operations used primarily in the oil sands industry. The Terracore rigs were newly built within the last four years and are also capable of conventional oil and natural gas drilling, coalbed methane drilling and the re-entry of existing oil and natural gas wells. The experienced personnel currently operating the assets to be acquired from Terracore will be offered positions with Ensign. The purchase price, which is not being disclosed in accordance with the terms of the agreement, will be funded from existing working capital and available credit facilities.
The acquisition of the Terracore assets is expected to close on or about July 15, 2008, after the parties have received necessary approvals pursuant to the Competition Act.
The proposed acquisition of the 12 specialty drilling rigs from Terracore and the experienced personnel that come with this acquisition will expand Ensign's capabilities to service its customers in the oil sands coring and specialized drilling markets. Upon completion of the proposed acquisition of the Terracore drilling rigs, the Encore Coring & Drilling division of Ensign will operate a fleet of 47 coring/drilling rigs in Western Canada, one of the largest fleets in this market segment.
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