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Ensign buys Rowan's drilling unit for $510-million

Ensign drilling at Storm Exploration Inc.'s Montney site.

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Ensign Energy Services Inc. says it has agreed to acquire the land drilling division of Rowan Companies Inc. for $510-million, plus working capital.

The Calgary-based oilfield services contractor says it has a definitive agreement to buy Rowan Land Drilling, which operates 30 deeper capacity electric land drilling rigs in the southern United States.

Ensign says the deal will complement its operations in the Rocky Mountain region and California.

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The purchase will be funded through Ensign's existing working capital, available lines of credit and a loan of up to $400-million (U.S.).

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