Central Alberta Well Services has executed an asset purchase agreement with Wellco Energy Services, whereby CWC has agreed to acquire all of the assets and business of Wellco's service rig division located in Brooks, Alberta, Canada.
The total purchase consideration to be paid is C$11.31 million in cash. The acquisition will add nine 1500 meter service rigs and related equipment to CWC’s current fleet of 25 service rigs.
CWC is also expected to take delivery of four additional service rigs currently under construction, bringing CWC’s total operating service rig fleet to 38 units by the end of the first quarter of 2008. In addition, the acquisition will enhance CWC’s geographical presence in southern Alberta with the newly acquired operating facility in Brooks, Alberta.