At the end of November 1999 Petro Well Energy Services Inc. completed the acquisition of the rig service business of CenAlta Well Services Inc. and an amalgamation with Aldrilco Ltd. to create a new significant company in the well service business. Prior to the transaction, Petro Well, a TSE listed company, had 26 service rigs and 2 drilling rigs. With the acquisition of CenAlta’s 140 service rigs and Aldrilco’s 9 drilling rigs, Petro Well has become a major player in the drilling and service rig business.
The larger transaction was the acquisition of the CenAlta business for a total of $135 million, payable as to approximately $50 million in cash, $38 million in Petro Well shares and the balance by assumption of debt. Representing CenAlta in the transaction were John A. Peters (commercial and securities) and William J. Fowlis, C.A., (tax) of the Miller Thomson LLP Calgary office. Gary R. Bugeaud (commercial, securities) and John A. Brussa (tax) of Burnet, Duckworth & Palmer acted for Petro Well in the deal.
First Energy of Calgary raised over $50 million on behalf of Petro Well to complete the transaction and were represented by Robert A. Lehodey of Bennett Jones. Following completion of the acquisition Petro Well changed its name to CenAlta Energy Services Inc. and consolidated its shares on a 1 for 5 basis.