CWC Energy Services Corp. (TSX-V: CWC), a portfolio company of Brookfield Capital Partners Ltd., has closed the acquisition of the service and swabbing rig assets and ongoing operations of C&J Production Services-Canada Ltd. from C&J Energy Services, Inc. (NYSE: CJ) for $37.5 million.
The assets acquired include C&J’s Canadian fleet of 75 workover rigs, 13 swabbing rigs, and the real estate associated with six operating facilities (valued at $15 million) throughout Western Canada.
The C&J Canada assets and operations are being integrated into CWC’s service rig division.
The combination of CWC’s premier well servicing fleet of 74 service rigs and C&J Canada’s 75 service rigs will create the largest active service rig fleet in Canada based on reported operating hours in 2016 and year-to-date 2017 by the Canadian Association of Oilwell Drilling Contractors with a Canadian service rig market share of approximately 15%.
Brookfield Capital Partners, directly and indirectly through BCP II AIV LP, and Brookfield Business Partners Canada LP, collectively control approximately 72.7% of CWC outstanding common shares.
photo credit: C&J Energy Services