Precision pushes into U.S. with 11 rigs

Precision Drilling Trust, Canada’s largest oilfield contractor, is spreading its wings into the United States.

Initially, it will divert one rig from Canada south of the 49th parallel, then build 10 rigs for delivery by the second quarter of 2008.

“We believe the initiative will serve as an initial platform for growth in the United States market and represents an opportunity for Precision to demonstrate its capabilities,” said Precision President and Chief Operating Officer Gene Stahl.

“The U.S. market offers an opportunity for higher year-round utilization,” he said, noting there is a “strong technical fit” for his company’s equipment and expertise in some key drilling markets.

The new U.S. rigs will be rated to about 10,000 feet and will represent the next generation of the firm’s Super Single rig, employing proprietary hardware.

The company expects the initiatives will require capital spending of about C$115 million as part of a planned increase in its 2006 capital budget to C$430 million over the next 18 months.

Once it completes its full Canadian and U.S. expansion program in 2008, the company will have a fleet of 261 rigs, 250 operating in Western Canada and the rest in the U.S., compared with 230 rigs in 2005.

—Gary Park