Jun. 11, 2015, 11:19 AM
- Trinidad Drilling (OTCPK:TDGCF) agrees to acquire CanElson Drilling (OTC:CDLRF) for cash and shares valued at ~C$505M, including the assumption of C$36M in CanElson debt, in a bid to save costs amid slumping oil prices.
- The combined company will operate one of the newest and largest fleets of oil and gas drilling rigs in North America with a combined total of 163 gross land drilling rigs, including eight international rigs under Trinidad’s joint venture.
- RBC analysts say they view the acquisition favorably, as it deleverages Trinidad’s balance sheet and raises its utilization in its core Canadian market.