Ensign Energy Snatches Up 35 Drilling Rigs Across Canada from Nabors Industries

Researched by Industrial Info Resources (Sugar Land, Texas)--Oilfield services company Ensign Energy Services Incorporated (Calgary, Alberta) has agreed to acquire a fleet of 35 land-based drilling rigs across Canada from international drilling contractor Nabors Industries Limited (NYSE:NBR) (Hamilton, Bermuda). Ensign and Nabors provide rigs and other drilling services to exploration and production (E&P) companies across Canada, including ARC Resources Limited (TSX:ARX) (Calgary) and Canadian Natural Resources Limited (NYSE:CNQ) (Calgary). Industrial Info is tracking more than $900 million in active projects involving Ensign's services, as well as $6 billion in active projects involving Nabors worldwide--including more than $2.3 billion worth of contracted projects in Canada.

The deal is subject to certain closing conditions and receipt of required regulatory approvals. The companies did not provide an expected closing date.

Click on the image at right for a heat map of active drilling projects across Canada already featuring both Nabors and Ensign, from Industrial Info's Geolocator tool.

The bulk of Ensign and Nabors' contracted Canadian work tracked by Industrial Info is in Alberta, including several projects already featuring both companies' services. E&P company Birchcliff Energy Limited (Calgary) is contracting with Nabors and Ensign for a $126 drilling program near the Pouce Coupe Processing Plant in Spirit River, while Tourmaline Oil Corporation (Calgary) is contracting with Nabors and Ensign for a $225 million drilling program in the Mesreau Field near Grande Cache. The Pouce Coupe project, which kicked off in March, involves 19 new wells, while the Mesreau project, which kicked off in April, involves as many as 42 new wells. Both projects are expected to wrap up toward the end of the year. Subscribers can learn more from Industrial Info's reports on the Pouce Coupe and Mesreau projects.

Many of the projects currently involving Nabors, but not Ensign, also are in Alberta. Along with Precision Drilling Corporation (NYSE:PDS) (Calgary) and DC Drilling Incorporated (Moses Lake, Washington), Nabors is performing drilling and gathering field construction for ARC Resources Limited's $320.6 million Nest II Field program south of Grande Prairie, Alberta, which involves constructing multiple new well pads and drilling 50 new wells. Activity kicked off in March and is expected to wrap up toward the end of the year. Subscribers can learn more from Industrial Info's detailed project report.

Click on the image at right for a heat map of Nabors' active drilling projects across Canada, including those not currently featuring Ensign's services, from Industrial Info's Geolocator tool.

Several of Nabors' contracting projects in British Columbia were awarded by Canadian Natural Resources Limited, including the $192.5 million drilling program and field expansion in Wonowon, which will add 35 wells to the existing field, and supply AltaGas Limited's (TSX:ALA) (Calgary) nearby Townsend Cryogenic Natural Gas Processing Plant. The project kicked off in March and is expected to wrap up in December. Subscribers can learn more from Industrial Info's detailed project report.

Ensign's work without Nabors includes Torxen Energy Limited's (Calgary) $60 million drilling and expansion program near Brooks, Alberta. Torxen is drilling 20 new wells to increase the flow of natural gas to its nearby Alderson West Sour Gas Processing Plant. Precision Drilling is among the other contractors. Subscribers can learn more from Industrial Info's detailed project report.

"The acquisition of Nabors' assets in Canada provides Ensign an expanded fleet of high-spec drilling rigs along with highly technically trained crews, while expanding Ensign's client base and providing cost synergies," said Robert Geddes, the chief operating officer for Ensign, in a press release. "Additionally, Nabors' deeper high-spec fleet in Canada is equipped similarly to Ensign's high-spec fleet, with automated drilling controls systems."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.