- Total Energy Services has revealed that its wholly owned subsidiary Savanna Energy Services completed the acquisition of Saxon Energy Services Australia
- The acquisition, which totaled US$34.8 million, was paid on completion and $2 million less any post-completion adjustments will be paid upon the first anniversary of the completion
- The acquisition will bolster Savanna’s Australia land drilling rig fleet to 16 rigs as well as increase the depth capacity of such fleet
- Shares of Total Energy Services are down 0.63 per cent to C$9.51 as of 11:47 am ET
Total Energy Services (TSX:TOT) has revealed that its subsidiary Savanna Energy Services has finalized the acquisition of Saxon Energy Services Australia.
After the acquisition, Total Energy Services stated that Savanna Energy paid US$34.8 million and an additional $2 million will be paid upon the first anniversary of completion.
The acquisition of Saxon Energy by Savanna will increase Savanna’s Australia land drilling rig fleet to 16 rigs and will increase the depth capacity of such fleet.
An additional drilling rig is under construction and is expected to begin operating in July 2204 under a long-term contract.
Savanna Australia owns and operates five hybrid coil tubing drilling rigs in Australia. These rigs have hook load capacities ranging from 100,000 to 150,000 pounds. A sixth rig, an AC electric rig with a hook load capacity of 150,000 pounds, is currently under construction and is scheduled to commence operations in Australia in mid-2024 under a long-term contract.
Total Energy Services first revealed the acquisition of Saxon Energy back in January.
With its headquarters out of Brisbane, Australia, Saxon owns and operates a fleet of 11 land drilling rigs, 10 of which are currently marketed. Saxon’s marketed fleet includes four 600-horsepower rigs with hook load capacities ranging from 150,000 to 200,000 pounds, and six 1,200-horsepower rigs with hook load capacities ranging from 320,000 pounds to 400,000 pounds.
Total Energy Services is a Calgary-based company that provides contract drilling services, rentals and transportation services, well servicing and compression and process equipment and service to the energy and other resource industries from operation centres in North America and Australia.
Shares of Total Energy Services are down 0.63 per cent to C$9.51 as of 11:47 am ET.
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