Canada’s oilfield services provider Ensign Energy Services Inc. said on Nov. 27 about 56% of Trinidad Drilling Ltd.’s shares have been tendered in its hostile offer, with rival bidder Precision Drilling Corp. walking away.
Precision and Trinidad’s shares both closed up more than 2.5%, while Ensign ended down 8.8%.
Ensign said the tendered shares helped meet the statutory minimum condition for its C$947-million hostile offer. The company now owns 66.18% of Trinidad shares, including stock in the company it previously owned.
Precision said on Nov. 27 it was awaiting payment of the termination fee of $20 million based on its agreement with Trinidad.
The rival bids underscored how oilfield service providers are looking to cushion the impact of Canadian oil producers tapping the brakes on spending, as pipeline bottlenecks result in wide discounts for Western Canada Select heavy crude to U.S. benchmark crude.
Ensign decided to launch the bid in August after Trinidad completed a strategic review it began in February, while North American drilling contractor Precision in October offered a deal valued at C$1.03 billion.
Trinidad’s board had rejected the C$1.68 per share all-cash bid from Ensign and instead urged shareholders to accept an all-stock offer from Precision.
Recommended Reading
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
To Dawson: EOG, SM Energy, More Aim to Push Midland Heat Map North
2024-02-22 - SM Energy joined Birch Operations, EOG Resources and Callon Petroleum in applying the newest D&C intel to areas north of Midland and Martin counties.
Gushing, Ohio: EOG Joins Ascent, Encino in Top Oil Wells
2024-01-22 - EOG’s latest wells in its new Ohio oil play are rolling into state public records, while Ascent Resources and Encino Energy are reporting the biggest producers. All three are landing 3-milers. Some are 3.5 miles.
Tech Trends: Halliburton’s Carbon Capturing Cement Solution
2024-02-20 - Halliburton’s new CorrosaLock cement solution provides chemical resistance to CO2 and minimizes the impact of cyclic loading on the cement barrier.
Commentary: The Oil and Gas Future—Believe It or Not
2024-01-10 - If you believe the IEA’s analysis, plenty of oil and gas companies won’t survive very far into the future.