Ensign unit to buy Rowan Land Drilling for $510 million

By OGJ editors
HOUSTON, July 20 -- Ensign Energy Services Inc. unit Ensign United States Drilling (SW) Inc., Calgary, entered a purchase and sale agreement to acquire the land drilling division of Houston-based Rowan Cos. Inc.—Rowan Land Drilling (RLD)—for $510 million in cash, plus $30 million in working capital.

RLD owns and operates 30 deeper capacity electric land drilling rigs, all of which are equipped with top drives, in the southern US. Ensign already owns a global fleet of more than 300 land rigs. Ensign noted that the location of the rigs will complement its existing US operations in the Rocky Mountains and California.

Upon completion of the deal, Ensign’s global fleet will increase to 340 marketed rigs, 115 of which will be in the US.

Matt Ralls, Rowan president and chief executive officer, said, “We are pleased to enter into this agreement with Ensign, as we continue to execute our stated strategy to separate noncore businesses.”

Rowan will place the aftertax proceeds, estimated at $370 million, towards building its offshore drilling business and deepwater expansion, the company said.