Rowan Companies, Inc. announced today that it has entered into a purchase and sale agreement with Ensign United States Drilling (S.W.) Inc., a subsidiary of Ensign Energy Services Inc. to sell Rowan's land drilling division for US$ 510 million in cash, plus working capital of approximately US$ 30 million.
The acquisition will provide Ensign with a substantial presence in the southern United States. The drilling rig fleet is comprised of 24 x 2000hp drilling rigs, 3 x 3000hp drilling rigs and 3 x 1500hp drilling rigs, and is ideally suited for extended-reach drilling in the oil and natural gas resource plays of Texas, Louisiana, Alabama and Oklahoma.
Matt Ralls, President and Chief Executive Officer, commented, “We are pleased to enter into this agreement with Ensign, as we continue to execute our stated strategy to separate non-core businesses. We believe our high-specification land rig fleet will be a strong addition to Ensign's global fleet of over 300 land rigs, and that our land division employees will have significant opportunities with such a large and well-respected operation.”