To buy Trinidad Well Servicing, gaining 22 service rigs operating in AB, BC & SK.
Central Alberta Well Services Corp., Calgary, (Toronto Venture: CWC) plans to acquire Trinidad Well Servicing, the service rig division of Trinidad Drilling Ltd., Calgary, (Toronto: TDG), for C$38 million in cash.
The deal values the acquisition at C$1.73 million per rig, according to Central Alberta.
Trinidad Well operates 22 fully crewed service rigs throughout Alberta, British Columbia and Saskatchewan from operating bases in Grande Prairie, Red Deer and Lloydminster.
Pro forma, Central Alberta Well with have 64 active rigs, making it the sixth largest service rig provider in the Western Canadian Sedimentary Basin.
Central Alberta will fund the purchase with a new C$70-million credit facility consisting of a three-year committed revolving facility of C$40 million and a C$30-million nonrevolving facility to replace the existing debt facilities of the company.
Central AlbertaWell also plans to change its name to CWC Well Services Corp. to better reflect the company's identity and current scope of business activities.
The deal was expected to close on June 15.