High Arctic to Acquire Assets of Kamber Well Service Ltd.
High Arctic Energy Services Trust has signed a letter of intent to purchase the assets of Kamber Well Service Ltd., of Fort St. John, B.C. The purchase, which is scheduled to close on February 1, 2006, is contingent on the completion of appraisals and asset inspection.
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.
- High Arctic Executes Expression of Interest to Sell Optimal to Schlumberger (Apr 27)
- High Arctic Continues with Restructuring Efforts (Jun 11)
- High Arctic Settles Rig Purchase Obligation (Feb 01)