2011-06-14-2011-05-19

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
$24.0MM
Description

To acquire North Dakota drilling company, gaining 4 drilling rigs operating in Bakken play.

CanElson Drilling Inc., Calgary, (Toronto Venture: CDI) plans to acquire an undisclosed, privately-held North Dakota driller for approximately US$24 million.

CanElson plans to pay approximately US$19.3 million in cash and US$4.7 million in assumed debt.

The North Dakota driller owns four drilling rigs operating in the Bakken area of North Dakota. The rigs have primarily been drilling horizontal wells in North Dakota resource plays.

Pro forma, CanElson will operate a combined rig fleet of 32 (29 net) rigs which includes 18 drilling rigs in western Canada, 10 (nine net) drilling rigs in the U.S., two (one net) subcontracted drilling rigs in Mexico and two (one net) service rigs in Mexico.

CanElson president and chief executive Randy Hawkings says, "In addition to excellent well-maintained rigs, their quality experienced personnel will allow CanElson to get an immediate foothold in the second most active oil drilling state in the United States."

The deal was expected to close by June 2.