Closes its Second Acquisition in the Quarter CALGARY, AB, Sept. 8, 2021 /CNW/ - Cathedral Energy Services Ltd. (TSX: CET) ("Cathedral" or the "Company") is pleased to announce the closing of Cathedral's acquisition of the operating assets of Valiant Energy Services ("Valiant"), an Alberta-based directional drilling company, for a purchase price of $1,500,000 (the "Transaction"). The purchase price was satisfied through the issuance of 3,464,204 common shares of Cathedral (the "Consideration Shares") to Valiant. The Consideration Shares will be subject to a 4-month statutory hold period.
Post-closing, Cathedral's Canadian business is expected to operate over 30 jobs in Q3-2021 in the Western Canadian Sedimentary Basin ("WCSB") which equates to an estimated market share of current active jobs in Canada of more than 20%. Valiant currently has a 5-job capability and has been consistently operating at high levels of utilization since inception. This transaction also represents an opportunity for further margin expansion as Cathedral's complementary motor fleet replaces motor rentals on existing Valiant jobs. The principal owner of Valiant, Mr. Vaugn Spengler, has entered into a long-term performance-based agreement to remain with Cathedral and will continue to focus on opportunities to support and expand the existing customer base.
Tom Connors, Cathedral President & CEO, commented, "Valiant has constantly outperformed the market on a utilization basis and delivered above average margin performance and financial results over several years due to their high reliability and efficient operations. We are pleased to have Mr. Spengler join our organization and are excited about his contribution to our growth into the future. This deal represents another step on our strategic consolidation path and solidifies our position as one of the top three directional drilling contractors in Canada by job count. We will continue to explore opportunities to expand our business in both Canada and the USA through organic growth, further accretive acquisitions, and leading-edge technology."
https://www.newswire.ca/news-releases/cathedral-energy-services-closes-its-second-acquisition-in-the-quarter-through-the-purchase-of-valiant-energy-services-865725944.html