NEW YORK (AFX) - Savanna Energy Services Corp. said Tuesday it plans to buy Western Lakota Energy Services Inc. in a stock deal valued at over $560 million.
The combined enterprise will create the third-largest publicly listed drilling company in Canada.
Western Lakota investors will receive 0.64 common share of Savanna for each Western Lakota share.
The boards of both companies approved the deal, which is expected to close by September.
Senior executives of both companies will stay on at the combined organization, with Western Lakota chairman and chief executive Elson McDougald as chairman and Savanna CEO Ken Mullen as president and CEO.
The new company will have 66 drilling rigs -- expected to grow to 85 by the end of this year -- as well as 35 wireline units, 20 well servicing rigs, eight casing and coring rigs and five coil service rigs.
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