Cathedral Energy Services Ltd. has signed a deal to buy the directional drilling services business of Altitude Energy Partners LLC in an agreement it valued at about US$100 million in cash and shares in a bid to grow its U.S. business.
Altitude, a portfolio company of Black Bay Energy Capital LLC, has significant operations in Texas, most prominently in the Permian Basin.
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Under the deal, Cathedral says it will pay nearly US$62.7 million in cash and issue about 67 million shares.
READ MORE: Cathedral Energy Services CEO announces plan to retire
The Calgary-based company says it plans to operate under the Altitude name in the U.S. with the Altitude management team also leading Cathedral’s existing U.S. directional drilling business.
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Lee Harns, the current president and CEO of Altitude, will remain as president of the business unit.
The deal will also see J.R. Boyles, a director and founder of Altitude, appointed to Cathedral’s board of directors.
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