Ensign mounts challenge to Precision’s market dominance

Gary Park

Petroleum News Calgary correspondent

Precision Drilling remains Canada’s largest oilfield services company, but there is an emerging battle for the top spot, with Ensign Resource Service Group on an expansion path.

Of the more than 21,000 wells rig released in Canada last year, Precision drilled 8,083 for 27.45 million feet of hole, while Ensign and its affiliates racked up 5,020 wells and 17.8 million feet.

Combined, the two companies accounted for 13,013 wells or about 61 percent of the total.

Members of the Canadian Association of Oilwell Drilling Contractors completed 74.8 million feet, up 38 percent from 2002’s 54.1 million feet.

Those companies booked 110,999 operating days for 678 rigs, taking an average five days to drill a well to an average depth of 3,449 feet.

Ensign ended the year by acquiring Big Sky Drilling, whose nine rigs had an average 2003 utilization rate of 67.4 percent, the best in Canada.

In its pursuit of growth, Ensign, through its wholly owned subsidiary Rockwell Servicing, acquired 11 well servicing rigs and related assets Dec. 23 from privately held Crown Well Servicing. The purchase price was not disclosed.

Then on Jan. 31, it bought three specialty drilling rigs from Layne Christensen Canada, again for an undisclosed amount.

Ensign’s Chief Operating Officer Bob Geddes said the acquisition will allow the company to expand into the oil sands and growing coalbed methane markets.