CALGARY,
AB, Oct. 27, 2022 /CNW/ - Cathedral Energy
Services Ltd. (TSX: CET) ("Cathedral" or the
"Company" or "CET") and Ensign Energy Services Inc. (TSX:
ESI) are pleased to announce the acquisition of the operating
assets and personnel of Ensign's Canadian directional drilling
business (the "Transaction") by Cathedral for a purchase price of
CAN$5.0 million. As part of the Transaction, Cathedral and Ensign
have entered into a Marketing and Technology Alliance ("the
Marketing Alliance") which will further help support and expand the
customer base of both companies in the Canadian market. The
purchase price will be satisfied through the issuance by Cathedral
to Ensign Drilling Inc. of 7,017,988 common shares of Cathedral
(the "Consideration Shares"). In addition to a 4-month statutory
hold period on the Consideration Shares, the parties have agreed to
customary contractual restrictions on resale.
Tom Connors, Cathedral's
President & CEO, stated, "The addition of a Marketing Alliance
with Ensign further cements our position as a leader in the
directional drilling space and allows for further differentiation
of our business model as we drive value for our customers through a
combined technology offering that will continue to push efficiency
benchmarks within the industry. This acquisition also demonstrates
that we continue to deliver on a consolidation strategy that
significantly strengthens our business."
Ensign's President and COO, Robert
Geddes commented: "Our investment and strategic partnership
with Cathedral will add value to our customers through improved
drilling performance over time as we further advance directional
specific technologies and provide a differentiated service offering
in the market together. The combination of Cathedral's MWD platform
and high-performance mud motor technology along with Ensign's Edge
digital DRC automation platform and operational footprint in
Canada will help accelerate the
evolution of automation-assisted drilling for Ensign and the
industry."
Ensign did not own any securities of Cathedral prior to the
transaction. Post-closing, Ensign owns approximately 3.15% of
Cathedral's issued and outstanding common shares on a non-diluted
basis.
ABOUT CATHEDRAL
Cathedral Energy Services Ltd., based in Calgary, Alberta is incorporated under the
Business Corporations Act (Alberta) and operates in the U.S. under
Cathedral Energy Services Inc. Cathedral is publicly-traded on the
Toronto Stock Exchange under the symbol "CET". Cathedral is a
trusted partner to North American energy companies requiring high
performance directional drilling services. We work in partnership
with our customers to tailor our equipment and expertise to meet
their specific geographical and technical needs. Our experience,
technologies and responsive personnel enable our customers to
achieve higher efficiencies and lower project costs. For more
information, visit www.cathedralenergyservices.com
FORWARD-LOOKING
INFORMATION
This press release contains statements and information that may
constitute "forward-looking information" within the meaning of
applicable securities legislation, including statements identified
by the use of words such as "will", "expects", "positions",
"believe", "potential" and similar words, including negatives
thereof, or other similar expressions concerning matters that are
not historical facts. Forward-looking information in this news
release includes, but is not limited to, statements regarding
anticipated successful integration of the Ensign directional
drilling assets and personnel ("Assets"); and Cathedral's business
plans and strategies for growth. Such forward-looking information
is based on various assumptions that may prove to be incorrect,
including, but not limited to, assumptions with respect to: the
anticipated benefits from the Transaction and the Marketing
Alliance; conditions in the oil and gas markets and debt and equity
markets generally; and the ability of the Company to successfully
implement its strategic plans and initiatives. Although the
Company believes that such assumptions are reasonable, the Company
can give no assurance that such forward-looking statements will
prove to be correct or that any of the events anticipated by such
forward-looking statements will occur, or if any of them do so,
what benefits the Company will derive there from. Actual results
could differ materially due to a number of factors and risks
including, but not limited to: the risk that the integration of the
Assets will not yield the operational or financial benefits as
anticipated; the risk that demand for Cathedral's services,
including services relating to the Marketing Alliance, will not be
as anticipated; conditions in the oil and gas and financial markets
in Canada and the United States; the ability of management
to execute and fund its business strategy; and the impact of
general economic conditions in Canada and the
United States. Additional information regarding risks and
uncertainties of the Company's business are contained under the
heading "Risk Factors" in the Company's annual information form for
the financial year ended December 31,
2021 and the Company's other public filings which are
available under the Company's profile on SEDAR at www.sedar.com.
The forward-looking information included in this news release is
made as of the date of this news release and the Company does not
undertake an obligation to publicly update such forward-looking
information to reflect new information, future events or otherwise,
except as required by applicable law.
SOURCE Cathedral Energy Services Ltd.