Precision Drilling

Precision Drilling Corporation is the largest drilling rig contractor in Canada, also providing oil field rental and supplies.

History

Precision Drilling Ltd. was founded in 1951.[3]

In 1987, Precision Drilling was acquired by Cypress Drilling, led by president Hank Swartout, in a reverse takeover which left the company with a fleet of 19 rigs.[4] Swartout led the company through extensive growth until his retirement in 2007.[5]

In 2005, Precision sold its energy services and international contract-drilling divisions to Weatherford International for $2.28 billion[6] and reorganized as an income trust.[4][7] Precision converted from an income trust back to a corporation in 2010.[8]

In 2008, Precision acquired its US rival Grey Wolf Inc. for $2 billion,[9] a merger which expanded its rig count in the US, which it had largely left in 2005, over tenfold.[10] The acquisition led to financial difficulties which led to a $330M CAD investment by the Alberta Investment Management Corporation (AIMCo) in 2009,[11] characterized by Maclean's as a bailout.[12] AIMCo divested its stake in 2013.[13]

In 2018, Precision attempted to purchase Trinidad Drilling with over $1B CAD of shares as a white knight, opposing the cash bid of competitor Ensign Energy Services, however a drop in Precision's share price and thus bid value resulted in Ensign's bid prevailing.[14]

In September 2019, amid a difficult energy sector in Alberta, Precision Drilling Corporation's share price fell below the required minimum for the S&P/TSX Composite Index and was removed from the index.[15]

In July 2022, Precision Drilling acquired High Arctic Energy Services Inc.'s welling services and rental divisions for $29.3 million. [16]

Global fleet

In December 2023, Precision had 97 land drilling rigs in Canada (25% of total 386), 104 in the US (9% of total Super-Spec land drilling rigs), and 13 among Kuwait, Saudi Arabia, Iraqi Kurdistan, and Georgia.[17]

See also

• List of oilfield service companies

External links