On July 18, 2022, Precision Drilling Corporation acquired High Arctic Energy Services Inc.'s well servicing business and associated rental assets for $38.2 million in cash. This transaction increased Precision’s well servicing fleet by 80 rigs, expanding its Canadian operations and is expected to be accretive to earnings. The acquisition included 51 marketed and 29 inactive service rigs, rental assets, ancillary support equipment, and ownership of four operating facilities in key basins. The deal is anticipated to generate annual operating cost savings of $5 million within a year, supporting Precision’s capital allocation and de-leveraging plan. The transaction, aligning with Precision’s High Performance, High Value strategy, aims to consolidate the well servicing industry and enhance service capabilities for customers, while also offering greater opportunities for employees of both companies. The purchase structure involves an initial payment of $10.2 million at closing, with the remaining balance payable in January 2023. It is subject to standard closing conditions and was expected to be finalized before the end of July 2022. Precision’s financial advisory was provided exclusively by CIBC Capital Markets, and Torys LLP served as legal advisor.