Total Energy Services, through its wholly owned subsidiary Savanna Energy Services Australia, is set to acquire all the shares of Saxon Energy Services Australia for $37m in cash.

The Canadian energy services provider signed an agreement with Schlumberger NV (SLB), a US-based oilfield services company, to acquire Saxon.

Based in Brisbane, Australia, Saxon owns and operates a fleet of 11 land drilling rigs, among which 10 rigs are currently marketed.

Saxon’s marketed fleet comprises four 600hp rigs with load capacities ranging from 150,000 to 200,000lb and six 1,200hp rigs with load capacities ranging from 320,000 to 400,000lb.

Savanna has a fleet of hybrid coil tubing rigs, smart service rigs, ultra-light rigs and heavy multi-service workover rigs, with effective and safe rig designs.

Currently, the company owns and operates five hybrid coil tubing drilling rigs in Australia, with hook load capacities ranging from 100,000 to 150,000lb.

Savanna also has a sixth rig, an AC electric rig with a hook load capacity of 150,000 pounds.

The rig is currently under construction and is scheduled to begin operations in Australia, under a long-term contract, starting in mid-2024.

The acquisition is expected to be completed in the first quarter of 2024, subject to the satisfaction of certain conditions including the receipt of regulatory approvals.

Upon closing, the transaction is expected to enhance the depth capacity of Savanna’s drilling rig fleet, add experienced local personnel, and expand Savanna Australia’s customer base.

Total Energy intends to fund the acquisition using available cash and existing credit facilities.

Canaccord Genuity is acting as financial advisor to SLB, on the transaction.