Ensign Energy Acquisition of TDI
CALGARY, AB, July 17, 2020 /CNW/ – Ensign Energy Services Inc. ("Ensign" or "the Company") (TSX: ESI) is pleased to announce the acquisition of Halliburton’s 40% ownership in the joint venture operating under the name Trinidad Drilling International ("TDI") which owns and operates five drilling rigs in Mexico, Kuwait and Bahrain. The 40% ownership, inclusive of working capital in the TDI joint venture, was purchased for US $33.4 million from Ensign’s cash on hand. With this acquisition, Ensign now owns 100% of the TDI joint venture.
Robert Geddes, Ensign’s President and Chief Operating Officer, commented on the acquisition: "with this transaction, Ensign is pleased to announce that it now owns 100% interest in the rigs held by the venture in the strategic Kuwait and Bahrain areas along with two rigs in Mexico. The transaction involves four recently constructed state-of-art 3000+hp-AC drilling rigs and one newer 2000hp-AC drilling rig. The two rigs in Kuwait are state-of-art ADR 3000+hp-AC super spec rigs that are on long term contracts. The one Bahrain 2000hp-AC super spec drilling rig that was part of the JV is also on a long term contract and augments Ensign’s ongoing rig operations in Bahrain, doubling Ensign’s presence in the country. In addition, Ensign also acquired full ownership of the two joint venture 3000+hp-AC drilling rigs currently cold-stacked in Mexico."
"Ensign believes this strategic and opportunistic transaction will significantly expand Ensign’s platform in the Middle East with some of the newest and technically advanced drilling rigs in the region."