Trinidad Drilling Acquires Assets of Bear Drilling
Trinidad Drilling has agreed to purchase certain assets of Bear Drilling which include three heavy double drilling rigs and two triple drilling rigs, the doubles have depth ratings of 3,300, 3,500 and 3,600 meters while the triples have depth ratings of 4,200 and 4,500 meters. The acquisition also includes all drill pipe, spare parts and other miscellaneous inventory items related to the drilling rigs as well as complete rig crews.
The purchase price for these assets is $41.0 million, $40 million of which is to be paid in cash and $1.0 million in Trust Units to be issued to Bear. Trinidad expects to finance the cash portion of this acquisition with a combination of debt from its existing credit facilities and the proceeds from a private placement of Trust Units. The company's management is excited about having all of the Bear employees join Trinidad, and is looking forward to making the transition for each employee as easy and as effortless as possible.