Total Energy Services Inc. to Acquire Saxon Energy Services Australia Pty Ltd.
January 17 2024 - 8:00AM
Total Energy Services Inc. (“Total Energy” or “the Company”)
(TSX:TOT) is pleased to announce that its wholly owned subsidiary
Savanna Energy Services Australia Pty Ltd. (“Savanna Australia”)
has entered into an agreement with SLB to acquire all of the shares
of Saxon Energy Services Australia Pty Ltd. (“Saxon”) for US $37.0
million cash (the “Acquisition”). The Acquisition is expected to be
completed during the first quarter of 2024, subject to the
satisfaction of certain conditions including the receipt of
regulatory approvals.
Headquartered in Brisbane, Australia, Saxon owns
and operates a fleet of 11 land drilling rigs, 10 of which are
currently marketed. Saxon’s marketed fleet includes four 600
horsepower rigs with hook load capacities ranging from 150,000 to
200,000 pounds, and six 1,200 horsepower rigs with hook load
capacities ranging from 320,000 pounds to 400,000 pounds.
Savanna Australia currently owns and operates
five hybrid coil tubing drilling rigs in Australia. These rigs have
hook load capacities ranging from 100,000 to 150,000 pounds. A
sixth rig, an AC electric rig with a hook load capacity of 150,000
pounds, is currently under construction and is scheduled to
commence operations in Australia in mid-2024 under a long term
contract.
When completed, the Acquisition will increase
the depth capacity of Savanna Australia’s drilling rig fleet, add
experienced local personnel and expand Savanna Australia’s customer
base.
Total Energy intends to fund the Acquisition
utilizing cash on hand and existing credit facilities.
Canaccord Genuity is acting as financial advisor
to SLB on the Acquisition.
Headquartered in Calgary, Alberta, Total Energy
provides contract drilling services, rentals and transportation
services, well servicing and compression and process equipment and
service to the energy and other resource industries from operation
centers in North America and Australia. The common shares of Total
Energy are listed and trade on the TSX under the symbol TOT.
For further information, please contact Daniel
Halyk, President & Chief Executive Officer at (403) 216-3921 or
by e-mail at: investorrelations@totalenergy.ca or visit our website
at www.totalenergy.ca.
The TSX has neither approved nor disapproved of
the information contained herein.
Forward-Looking Information Cautionary
Statement
This news release contains certain
forward-looking information (referred to herein as “forward-looking
statements”). Forward-looking statements are often, but not always,
identified by the use of words such as “anticipate”, “believe”,
“plan”, “scheduled”, “intend”, “objective”, “continuous”,
“ongoing”, “estimate”, “expect”, “may”, “will”, “project”,
“should”, “scheduled” or similar words suggesting future events,
circumstances or outcomes. In particular, this news release
contains forward-looking information concerning the timing of the
completion of the Acquisition including the approvals and
conditions required with respect thereto, the potential impact of
the Acquisition on Total Energy including with respect to the
Company’s drilling rig fleet, personnel and customer base and the
timing of the Company’s sixth drilling rig entering the Australian
market.
Forward-looking statements are based upon the
opinions and expectations of the management of Total Energy as at
the effective date of such statements. Although Total Energy
believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions, it can give no
assurance that those expectations will prove to have been correct.
Forward-looking statements are subject to certain risks and
uncertainties that could cause actual events or outcomes to differ
materially from those anticipated or implied by such
forward-looking statements. These risks and uncertainties include,
but are not limited to, such things as the required regulatory and
other approvals may not be obtained in the timelines or on the
terms currently anticipated or at all, the Acquisition will be
subject to a number of closing conditions and no assurance can be
given that all such conditions will be met or will be met on the
timelines required. The benefits anticipated with respect to the
Acquisition are based on the current business, operational and
financial position of each of Total Energy and Saxon, which are
subject to a number of risks and uncertainties.
The forgoing risk factors are not exhaustive.
Having regard to the various risk factors, readers should not place
undue reliance upon the forward-looking statements contained in
this news release and such forward-looking statements should not be
interpreted or regarded as guarantees of future outcomes.
The forward-looking statements contained in this
news release are made as of the date hereof and Total Energy does
not undertake any obligation to update or to revise any of the
included forward-looking statements, except as required by
applicable securities laws in force in Canada. The forward-looking
statements contained in this news release are expressly qualified
by this cautionary statement.
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