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CATHEDRAL ENERGY SERVICES ACQUIRES COMPASS DIRECTIONAL AND FURTHER ADVANCES ITS INDUSTRY CONSOLIDATION STRATEGY
CATHEDRAL ENERGY SERVICES ACQUIRES COMPASS DIRECTIONAL AND FURTHER ADVANCES ITS INDUSTRY ...
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[{"type":"text","content":"\n \n \n \n CATHEDRAL ENERGY SERVICES ACQUIRES COMPASS DIRECTIONAL AND FURTHER ADVANCES ITS INDUSTRY CONSOLIDATION STRATEGY\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n CALGARY, AB\n \n \n ,\n \n \n June 22, 2022\n \n \n /CNW/ - Cathedral Energy Services Ltd. (TSX: CET) (\"\n \n Cathedral\n \n \" or the \"\n \n Company\n \n \") today announced the acquisition of the operating assets of Compass Directional Services Ltd. (\"\n \n Compass\n \n \") for\n \n $9.5 million\n \n , (the \"\n \n Transaction\n \n \"). Compass is a privately-owned, Canadian directional drilling business operating in the Western Canadian Sedimentary Basin, with a focus on the high-activity\n \n Montney\n \n and Deep Basin plays.\n \n \n \"Compass' services and technology tucks in well with our Canadian operations, adding skilled people, high-quality assets, and significantly expanding our exposure to the key\n \n Montney\n \n and Deep Basin plays,\" said\n \n Tom Connors\n \n , Cathedral's President and CEO. \"Importantly, the Compass acquisition strengthens our competitive position by adding a complementary customer base in both operating areas. Going forward, industry conditions remain attractive for further consolidation opportunities in\n \n North America\n \n .\"\n \n \n Compass has been operating since 1998 and has a strong track record of safe, high-performing operations, with a Canadian market share of approximately 5%. In a time of tight global supply chains for key equipment, Compass adds an immediate 15-job capacity to Cathedral and anticipates operating at peak capacity in the third quarter this year. Cathedral expects the cash flow generated from the Transaction to pay back the Company's initial investment in approximately 2.5 years, which is in line with other recent acquisitions.\n \n \n Furthermore, looking to the back half of 2022, Cathedral had already planned to deploy Rotary Steerable System (RSS) tools in\n \n Canada\n \n . The addition of Compass' well-established customer base in the\n \n Montney\n \n and Deep Basin - area...