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Cathedral Energy Services and Precision Drilling Announce Business Transaction, Strategic Alliance and Newly Appointed Board Member
Cathedral Energy Services and Precision Drilling Announce Business Transaction, Strategic...
About this update from Act Energy Technologies Ltd.
[{"type":"text","content":"\n \n \n \n Cathedral Energy Services and Precision Drilling Announce Business Transaction, Strategic Alliance and Newly Appointed Board Member\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 CALGARY, AB\n \n ,\n \n July 23, 2021\n \n /CNW/ - Cathedral Energy Services Ltd. (TSX: CET) (\"Cathedral\") and Precision Drilling Corporation (TSX: PD) (NYSE: PDS) (\"Precision\") are pleased to announce the closing of Cathedral's acquisition of Precision's directional drilling business (the \"Transaction\") for a purchase price of\n \n $6,350,000\n \n .  The Transaction includes operating assets and personnel of Precision's directional drilling business (including its operations facility in\n \n Nisku, Alberta\n \n ), along with an additional\n \n $3 million\n \n cash investment by Precision to support growth and expansion of Cathedral, including continuing the buildout of RapidFire\n \n TM\n \n measurement-while-drilling guidance systems and nDurance\n \n TM\n \n drilling motors.  Additionally, the Transaction is expected to enhance margins as expenses related to rental equipment used by Precision are replaced with proprietary Cathedral tools.\n \n \n As part of the Transaction, Cathedral and Precision have entered into a strategic marketing alliance (the \"Alliance\"), which is expected to produce new U.S. and Canadian customer opportunities for Cathedral as well as potential integrated service offerings for customers.  The Alliance is expected to support both parties' technology initiatives and lead the future of directional drilling. Precision's market leading Alpha\n \n TM\n \n digital technologies (AlphaApps, AlphaAutomation and AlphaAnalytics) are focused on automation and drilling performance and pair well with Cathedral's premium downhole equipment and directional drilling expertise.\n \n \n The parties have also entered into an investor rights agreement pursuant to which, among other things, Precision was granted the right to nominate a member to Cathedral's board of directors and certain customary participatio...