The second-largest drilling and well servicing contractor in Canada will soon be Western Energy Services, following its acquisition of Savanna Energy Services, which was announced today.
Total value of the deal is $533 million.
Savanna has been pushing back against a hostile takeover bid from Total Energy Services since late 2016, which CEO Chris Strong addressed in a statement.
“The arrangement delivers a higher premium and much larger ownership for Savanna shareholders in the ongoing company than Total's unsolicited offer,” he said.
“Equally as important, the combination represents true consolidation in drilling and well servicing in both companies' core Canadian market with customer bases that largely complement rather than overlap each other, which is expected to provide certain benefits of consolidation within these sectors."
In addition to its Canadian assets, Western says the combined company will have material operations in a number of the most active US basins, and be a market leader in drilling and well servicing for Australian onshore LNG suppliers.
On a pro forma basis, Western will operate 157 drilling rigs, 153 well servicing rigs and have an increased inventory of oilfield rental equipment.