Cathedral Energy Services and Precision Drilling close business transaction and strategic alliance
On July 23, 2021, Cathedral Energy Services Ltd. (“Cathedral”) and Precision Drilling Corporation (“Precision”) announced the closing of Cathedral’s acquisition of Precision’s directional drilling business for a purchase price of C$6,350,000. The purchase price was satisfied through the issuance of 13,400,000 common shares by Cathedral to Precision along with warrants to purchase an additional 2,000,000 Cathedral common shares at a price of C$0.60 per common share within a two-year period after closing.
The transaction included operating assets and personnel of Precision’s directional drilling business (including its operations facility in Nisku, Alberta), along with an additional C$3 million cash investment by Precision to support growth and expansion of Cathedral, including continuing the buildout of RapidFire™ measurement-while-drilling guidance systems and nDurance™ drilling motors.
As part of the transaction, Cathedral and Precision entered into a strategic marketing alliance, expected to produce new U.S. and Canadian customer opportunities for Cathedral as well as potential integrated service offerings for customers. The alliance is expected to support both parties’ technology initiatives and lead the future of directional drilling.
Further information can be found on Globe Newswire’s website.
Based in Calgary, Alberta and operating in the U.S. under Cathedral Energy Services Inc., Cathedral is a trusted partner to North American energy companies requiring high performance directional drilling services.
Precision Drilling is a leading provider of safe and high performance, high value services to the oil and gas industry. It provides customers with access to an extensive fleet of Super Series drilling rigs supported by an industry leading technology platform that offers innovative drilling solutions to deliver efficient, predictable and repeatable results through service differentiation. Precision also offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.