- Cathedral Energy Services Ltd. (CET) has acquired the directional drilling business of Precision Drilling Corp. (PD) for $6.35 million
- Precision will also invest $3 million to support the growth of Cathedral’s proprietary drilling technology
- The companies have also entered into a strategic marketing alliance to reach out to new U.S. and Canadian customers for Cathedral
- Cathedral Energy Services Ltd. (CET) is up 2.27 per cent, trading at $0.45 per share
- Precision Drilling Corp. (PD) is down 2.26 per cent, trading at $41.87 per share
Cathedral Energy Services Ltd. (CET) has acquired the directional drilling business of Precision Drilling Corp. (PD) for $6.35 million.
Cathedral will acquire all the operating assets of Precision’s directional drilling business in addition to a $3 million cash investment from Precision to support Cathedral’s growth.
The companies have also entered into a strategic marketing alliance. The goal of the alliance is to reach out to new U.S. and Canadian customers for Cathedral.
Tom Connors, Cathedral president and CEO, commented on the partnership.
“This strategic combination and alliance with Precision initiates some necessary consolidation and cements our position as one of the larger directional drilling contractors in the Canadian market space,” he remarked.
“Additionally,” he added, “the integrated service and technological offering enabled by this partnership has the potential to provide a greener future for the provision of directional drilling services.”
With Precision’s support, Cathedral will continue to build out its RapidFire technology, a guidance system that offers measurement while drilling, and its nDurance drilling motors.
Precision will replace its current rental equipment with Cathedral’s proprietary technology.
Kevin Nevu, President and CEO of Precision Drilling, also commented on the strategic alliance.
“The combination of Cathedral’s people, technology, and industry-specific focus with our operating platform and Alpha suite of digital technologies,” he said, “will drive further value for our customers as we continue to push efficiency benchmarks within the industry.”
Cathedral Energy Services is a Canadian company that provides directional drilling services to oil and natural gas companies in western Canada and the United States.
Precision Drilling Corp. is a leader in North American oil and gas services.
Cathedral Energy Services Ltd. (CET) is up 2.27 per cent, trading at $0.45 per share.
Precision Drilling Corp. (PD) is down 2.26 per cent, trading at $41.87 per share as of 9:47 am ET.
