Western Lakota Completes Rig Acquisition, Construction
Western Lakota Energy Services has closed the purchase of 100% of the common shares of 959271 Alberta Ltd. ("959271") from the Metis Nation of Alberta Association. The purchase price of $5,974,000 was paid for by the issuance of 244,000 common shares of Western Lakota and the transfer of 568,000 units of Akuna Drilling Trust which were owned by Western Lakota. The assets of 959271 include one 3,000 meter telescoping double drilling rig and related equipment which was built by Western Lakota in 2001 and has been operated by Western Lakota since that time. Other assets and liabilities include working capital of $763,000, and obligations under a capital lease of $495,000.
This transaction makes the Metis Nation of Alberta Association the second significant Aboriginal shareholder of Western Lakota and the first significant Aboriginal unit holder of Akuna Drilling Trust, a subsidiary of Western Lakota which owns and operates seven Coal Bed Methane (CBM)/oilsands coring/pre-set drilling rigs.
"We are very pleased that the Metis Nation of Alberta is now an equity owner," said Elson McDougald, President and Chief Executive Officer of Western Lakota. "This decision speaks to the confidence that this partner has developed in our Corporation."
Western Lakota has also completed construction on two more rigs and they are now operating in the field. One of the rigs is a 3,600 meter ultra heavy telescoping double drilling rig and the other is a 1,200 meter CBM/oilsands coring/pre-set drilling rig.
One of Canada's fastest growing energy services providers, Western Lakota is currently operating 36 drilling rigs, including seven CBM/oilsands coring/pre-set rigs and has committed to build 23 more drilling rigs that are scheduled to be completed throughout 2006 and early 2007. The Company also operates three coil service units with an additional five scheduled to be completed throughout 2006. Western Lakota continues to provide one of the newest fleets of safe and efficient drilling rigs and coil service units in Canada while delivering strong results for shareholders, customers and Aboriginal partners.
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