Acquisition of Precision Drilling Snubbing Assets High Arctic Energy Services Inc. (“High Arctic”) is pleased to announce it has entered into an agreement to acquire the assets of Precision Drilling‘s snubbing services equipment, entirely located in Canada (“Precision Snubbing”). The acquisition is expected to close on April 15, 2019, and will provide High Arctic with additional quality snubbing equipment and access to experienced personnel and crews.
The purchase price of a total of $8.25 million will be settled in cash from cash on hand.
The acquisition will provide High Arctic with twelve additional marketed snubbing units, seven of which have been active over the last twelve months, as well as certain patent rights related to the design and configuration of stand-alone snubbing units and spare equipment. This will provide additional capacity to further strategic diversification and growth in the United States. It will also increase High Arctic’s fleet size, scale and capability in Canada to meet the needs of customers through safe and efficient services designed to increase production and lower costs. Upon closing of the acquisition, High Arctic will own and operate the largest snubbing fleet in Canada consisting of a total of 29 snubbing units.
The acquisition will complement High Arctic’s Powerstroke acquisition announced in August 2018, which established an entry into the United States for High Arctic, enabling it to continue to expand its well service offering. The trend toward longer well bores and increased number of stages in each well bore has increased the demand for pressure control equipment required for well completions. Of High Arctic’s total fleet of snubbing units, five are currently being marketed in the United States and an additional three units will be deployed for well service and completion work in the Niobrara and the Bakken. High Arctic is examining other markets in the United States to expand its services.