CALGARY, Dec. 4 /CNW/ - TSX Symbol: HNL - Horizon North Logistics Inc. ("Horizon" or the "Company") announces that it has closed a transaction with Ensign Energy Services Inc. ("Ensign") whereby Horizon has acquired Ensign's Canadian based drill camp fleet (39 side by side camps and related support equipment) for a purchase price of $17.75 million payable by way of $7.9 million in cash and a $9.85 million non-interest bearing note to be repaid over a term of up to 6 years. Actual payments on the note are dependent on utilization levels of the equipment. The purchase and sale agreement also includes commitments to work together to market the equipment.
"This transaction significantly increases Horizon's share of the side by side drill camp market and is an example of our ability to utilize our strong balance sheet to enhance our asset base at what we view as a low point in the market cycle. What made this transaction particularly attractive was the opportunity to work closely with one of Canada's premier drilling contractors", said Ric Peterson, Horizon's Chairman, President and Chief Executive Officer.
"We are pleased to be partnering with Horizon to offer quality camp services to our customers", said Bob Geddes, Ensign's President and Chief Operating Officer.
SOURCE Horizon North Logistics Inc.
For further information: For further information: Ric Peterson, Chairman, President and Chief Executive Officer or Bob German, Vice President Finance and Chief Financial Officer, 1600, 505 - 3rd Street S.W., Calgary, Alberta T2P 3E6; Telephone: (403) 517-4654, Fax: (403) 517-4678; website: www.horizonnorth.ca