en.Wedoany.com Reported - Canadian oilfield services company Ensign Energy Services Inc., through its subsidiary, has reached an agreement with shareholders of Citadel Drilling Ltd. to acquire all outstanding shares of CDL for $65 million. The acquisition will be funded from existing cash and available credit facilities, and is subject to certain closing conditions.

Ensign President and Chief Operating Officer Robert Geddes stated that the acquisition adds six high-specification AC rigs to the company's operations in the Permian Basin region of the United States. These rigs are equipped with an experienced management team, technical personnel, and a managed pressure drilling equipment package (operating under the name Opla Energy Services). The transaction increases Ensign's rig capacity in the Permian by 20%, expands its customer base and market share, while achieving cost synergies. Citadel's high-spec rigs are equipped with automated drilling control systems and other equipment capable of drilling the ultra-long horizontal sections required in the Permian. The deal provides Citadel's customers with a broader operational platform, including additional rig capacity, advanced drilling technologies, and oilfield services, while preserving the customer relationships and service quality of the Citadel brand.

Ensign is a global leader in oilfield services, headquartered in Calgary, Alberta, Canada, with operations in Canada, the United States, and international markets, offering contract drilling, underbalanced and managed pressure drilling, rental equipment, well servicing, and production services.

TPH&Co (the energy business of Perella Weinberg Partners) served as financial advisor to CDL in this transaction.