Nabors Industries, Inc. last week completed the previously announced acquisition of Enserco Energy Service Company Inc., a Tonronto listed company.
Gene Isenberg, Chairman and CEO of Nabors said, "I have been particularly impressed with the quality of Enserco's people and assets and look forward to integrating them into what is sure to be the best operation in Canada. The combined companies will possess the most modern and suitable fleet of rigs as well as the financial and technical resources to further expand. These enhanced capabilities will enable us to better fulfill our customers' requirements as they endeavor to find and develop what appears to be the most prospective natural gas province in North America. While the near-term business outlook is rather subdued I am confident the second half of this year will be the beginning of a much brighter longer-term future."
Under the terms of the acquisition, a Canadian subsidiary of Nabors acquired all of the outstanding common shares
of Enserco pursuant to a plan of arrangement pursuant to the Canada Business Corporations Act in exchange for approximately C$184 million in cash and approximately 3.55 million exchangeable shares of the Canadian subsidiary, of which approximately 2.64 million shares were
immediately exchanged for shares of Nabors common stock in accordance with the instructions of the holders of those shares.
The transaction adds approximately 193 Canadian service rigs and 30 drilling rigs to Nabors' portfolio of assets, and with the acquisition Nabors' assets now include over 530 land drilling and 933 land workover and well-servicing rigs worldwide, including 245 in Canada. Offshore, Nabors operates 44 platform rigs, 15 jack-ups, and three barge rigs in the domestic and international markets. Nabors also operates 30 marine transportation and support vessels in the Gulf of Mexico. In addition, Nabors manufactures top drives and drilling instrumentation systems and provides comprehensive oilfield hauling, engineering, civil construction, logistics and facilities maintenance, and project management services.