US - Akita Drilling Ltd. of Canada definitively agreed to merge with Xtreme Drilling Corp., a Houston-based provider of onshore drilling and coiled tubing services, for a total USD 147.723 mil, in a stock swap reverse takeover transaction, via scheme of arrangement. Akita offered USD 0.456 in cash per share and 0.29 class A non-voting common share per Xtreme share.
Based on Akita's closing stock price of USD 5.221 on 1 June 2018, the last full trading day prior to the announcement, each Xtreme share was valued at USD 1.97.
Date Announced: 06/05/2018
Deal Status (as of publication date): Pending
Deal Value (mil): $160.82
ATB Financial (Advisory, Provided Financing)
Bennett Jones LLP (Legal Advisor)
Felesky Flynn LLP (Legal Advisor)
Tudor Pickering Holt & Co LLC (Advisory)
Stikeman Elliott LLP (Legal Advisor)
Akita Drilling Ltd., headquartered in Calgary, Alberta provides oil and gas contract drilling services. It is involved in other forms of drilling, including potash mining and the development of storage caverns. It owns and operates approximately 31 drilling rigs in Canada. The Company was founded on November 3, 1992.
Xtreme Drilling Corp., headquartered in Houston, Texas, provides onshore drilling and coiled tubing services. Its segments are Drilling Services, Coil Services and Corporate and Other. The Drilling Services segment operates a fleet of drilling rigs contracted with oil and natural gas exploration, and production companies and oilfield service providers. The Coil Services segment has coiled tubing well service units that target primarily post fracture treatment cleanouts, re-entry and horizontal drilling. Its ultra-deep intervention services include tubing conveyed perforating and mill outs following well, and hydraulic fracturing. Its fleet is engaged in drilling in the United States Rocky Mountain region. Its drilling rigs include automated pipe handling, powered catwalk machines, variable frequency drive systems and integrated skidding systems. Its coiled tubing units include craneless coiled tubing units and mobile support trailers. The Company was founded on May 24, 2005.
*List of advisors are those known at press time.