Stampede Drilling Rig 2. Photo by Brian Zinchuk

CALGARY – Stampede Drilling announced on Aug. 3 the acquisition of six drilling rigs from a private company, but didn’t say who it is.

However, reading the press release and comparing it to Beaver Drilling’s existing fleet, there seems to be a match. Reached by phone on Aug. 8, both Stampede and Beaver declined to comment as to who the vendor is. One of the few remaining privately-held drilling contractors of that size in Western Canada, Beaver’s head office is in Calgary while its operations are in Nisku.

Stampede announced the acquisition is for approximately $21.5 million. They’re doing that by selling more shares, as opposed to debt financing. And they plan of fixing up those rigs and putting them in the field.

The purchase price will be funded by proceeds from a concurrent short form prospectus offering of common shares at a price of $0.32 per offered share (the for minimum gross proceeds of $22.5 million and maximum gross proceeds of $25. The acquisition and the offering are expected to close on August 23, 2022, or such other date as may be agreed upon between the parties as described herein.

“The acquisition will add six high quality drilling rigs that are well suited to work in several of the most active oil and gas plays in western Canada, furthering our goal to provide the safest and most efficient drilling services provider in Canada,” stated Lyle Whitmarsh, president & chief executive officer of Stampede, in the release.

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Stampede was founded in Estevan. The company has eight rigs in southeast Saskatchewan and five in Alberta, according to data for the Canadian Association of Energy Contractors. This move, if completed, will result in further geographic diversification for the company.

In describing the hardware, Stampede said, “Stampede will be acquiring six drilling rigs and related assets, comprised of two ‘doubles,’ three ‘heavy doubles’ and one ‘super spec triple.’ Subject to the corporation’s expected investment of approximately $5 million (an anticipated investment of approximately $1 million per double rig) for required upgrades and recertification, Stampede anticipates that the two doubles and three heavy doubles will be working under short-term or long-term contracts by the end of 2022. The corporation anticipates that the super spec triple rig will be ready for work in mid-2023 subsequent to an additional anticipated investment by the corporation of approximately $5 million to upgrade, refurbish and recertify the super spec triple. Stampede expects to enter into a first amending agreement with HSBC later today, which is expected to increase the total credit capacity to a maximum of $32.5 million. Additional draws under Stampede’s lending facilities will be used to fund the capital upgrades on the assets purchased pursuant to the acquisition.”

In May, Elson McDougald was appointed as chair of Stampede. This brings together Whitmarsh and McDougald, who had worked together in CanElson Drilling. McDougald has been on the board as a director since 2017.

 

  • 0029 Latus Viro updated Latus phone
  • 0031 Lloydminster_Heavy_Oil_Show_2022
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  • 0027 TED_NA Helium 2021_30
  • 0028 SIMSA_Energy_Forum_2022
  • 0025 Kendalls
  • 0026 Buffalo Potash Quinton Salt
  • 0023 LC Trucking tractor picker hiring mix
  • 0022 Grimes winter hiring
  • 0021 OSY Rentals S8 Promo
  • 0019 Jerry Mainil Ltd hiring dugout
  • 0018 IWS Hiring Royal Summer
  • 0014 Buffalo Potash What if PO
  • 0015 Latus Viro PO Ad 01
  • 0013 Panther Drilling PO ad 03 top drive rigs
  • 0011
  • 0006 JK Junior
  • 0004 Royal Helium PO Ad 02
  • 9001
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