Precision Drilling to buy CWC Energy Services in deal valued at about $141-million

Precision Drilling Corp, commonly referred to as PD, has recently entered into a contract to purchase CWC Energy Services Corp, unofficially known as CWC-X. The acquisition deal holds an approximate value of $141-million, which includes stock shares, monetary funds, and assumed debt.

The CEO of Precision, Kevin Neveu, claims that this agreement will enhance the company's service operations in both Canada and the United States by incorporating exceptional drilling equipment and skilled workforce.

The purchase will include 62 service rigs and seven drilling rigs that are actively being used in Canada. Additionally, there are 11 drilling rigs in the United States that are also in use, including seven rigs specifically designed for AC triple operations.

In accordance with the agreement, which is subject to the approval of CWC shareholders and others, Precision will provide a sum of 947,909 Precision shares and approximately $14 million in cash as payment, while also taking on CWC's existing debt.

The suggested combination price amounts to 19.7 cents per CWC share, calculated from Precision's ending price on September 1st.

CWC's stocks concluded at a value of 20.5 cents on the trading platform of TSX Venture Exchange this Wednesday.