Forward-looking information in this news release includes, but is not limited to, statements regarding: industry conditions in North American energy markets anticipated benefits of the Transaction, including complementary technology and regional opportunities and demand for such services, Cathedral's ability to meet such demand anticipated successful integration of the Compass assets and personnel and Cathedral's business plans and strategies for growth. This press release contains statements and information that may constitute 'forward-looking information' within the meaning of applicable securities legislation, including statements identified by the use of words such as 'will', 'expects', 'positions', 'believe', 'potential' and similar words, including negatives thereof, or other similar expressions concerning matters that are not historical facts. Approximately 18% of the issued shares are subject to contractual restrictions over a longer period lasting four years. Approximately 82% of the issued shares will be subject to contractual restrictions with portions vesting at various periods over two years. The Transaction was funded by: (i) $4.0 million in cash and (ii) the issuance of 7,643,139 common shares of Cathedral to Compass with a deemed price of $0.72 per common share (the 'Acquisition Shares'). The addition of Compass' well-established customer base in the Montney and Deep Basin - areas of high demand for RSS tools - will provide Cathedral with a valuable platform for the expansion of the service in Canada and will help accelerate growth in RSS market share over time.Īs part of the Transaction, Cathedral has retained key Compass personnel under employment contracts to ensure a seamless customer service experience, successful integration and long-term alignment with Cathedral's strategy.

Cathedral expects the cash flow generated from the Transaction to pay back the Company's initial investment in approximately 2.5 years, which is in line with other recent acquisitions.įurthermore, looking to the back half of 2022, Cathedral had already planned to deploy Rotary Steerable System (RSS) tools in Canada. In a time of tight global supply chains for key equipment, Compass adds an immediate 15-job capacity to Cathedral and anticipates operating at peak capacity in the third quarter this year. Going forward, industry conditions remain attractive for further consolidation opportunities in North America.'Ĭompass has been operating since 1998 and has a strong track record of safe, high-performing operations, with a Canadian market share of approximately 5%. 'Importantly, the Compass acquisition strengthens our competitive position by adding a complementary customer base in both operating areas. 'Compass' services and technology tucks in well with our Canadian operations, adding skilled people, high-quality assets, and significantly expanding our exposure to the key Montney and Deep Basin plays,' said Tom Connors, Cathedral's President and CEO.

Compass is a privately-owned, Canadian directional drilling business operating in the Western Canadian Sedimentary Basin, with a focus on the high-activity Montney and Deep Basin plays. (' Compass') for $9.5 million, (the ' Transaction'). (TSX: CET) (' Cathedral' or the ' Company') today announced the acquisition of the operating assets of Compass Directional Services Ltd. CALGARY, AB, J/CNW/ - Cathedral Energy Services Ltd.

Directional drilling costs per foot