Calgary-based drilling contractor Precision Drilling Corp. is merging its drilling operations with cross-town rival CWC Energy Services Corp., a deal designed to boost the North American rig fleet.

Rig Count

The cash-and-stock transaction is worth an estimated C$141 million ($104 million). Precision said it would trade 948,000 of shares, valued at C$88 million ($65 million), as well as pay C$14 million ($10 million) cash and assume CWC’s outstanding debt.

“This acquisition supports our high performance, high value strategy, as it allows us to expand our service offering in both Canada and the U.S. with high-quality rigs and field personnel,” CEO Kevin Neveu said. 

CWC CEO Duncan Au said the strategic combination “has the size and scale that will allow for expanded opportunities...